Q330
Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as
A.
Contingent liability
B.
Liability
C.
Provision
AnswerD.
Reserve
Answer: Option C
Solution
Answer: Option C
Solution:
Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as Provision. A provision is an account which records a present liability of an entity.