CA Inter Advanced Accounting | Provision vs Liability Explained | Gratuity vs Loan | 2027 Exam
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CA Inter Advanced Accounting | Provision vs Liability Explained | Gratuity vs Loan | 2027 Exam
Although a Provision is also a Liability, there is one key distinction. 👉 A Provision is a liability that is measured using estimates. 👉 A Liability is a liability that does not require estimation because the amount is already known. Let's understand this with an example. Take Gratuity. Who receives gratuity? Employees, when they retire ...
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