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Reserve and fund - class-XI
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'Provision' is a charge against profit.
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A
True
💡 Explanation:
The term 'Provision' refers to any of t6the following amounts:
(a) The amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets; or
(b) The amount retained by way of providing for any known liability of which the amount cannot be determined with sustantial accuracy.
Provision is a charge against the profit and is required to be created irrespective of the amount of profit.