provision


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Related to provision: Provision for Bad Debts

Provision

Used in accounting as a charge for an estimated expense or loss.

provision

the sums charged in DOUBLE ENTRY ACCOUNTS against a firm's PROFITS in anticipation of costs which are likely to arise in the future. The most common general provision made by firms is the provision for DOUBTFUL DEBTS which is established in anticipation of some customers not paying what they owe. In addition, a firm may make a specific provision against, say, a damages claim which is presently not yet settled. Provisions are aimed at trying to ensure that profits are not overstated by making sure that all a firm's costs are charged, even those whose precise amount is not yet certain. See REVALUATION PROVISION, DEFERRED TAX.
References in classic literature ?
Suppose, then, that the expressions defining the authority of the convention were irreconcilably at variance with each other; that a NATIONAL and ADEQUATE GOVERNMENT could not possibly, in the judgment of the convention, be affected by ALTERATIONS and PROVISIONS in the ARTICLES OF CONFEDERATION; which part of the definition ought to have been embraced, and which rejected?
But is it necessary to suppose that these expressions are absolutely irreconcilable to each other; that no ALTERATIONS or PROVISIONS in the articles of the confederation could possibly mould them into a national and adequate government; into such a government as has been proposed by the convention?
NEW PROVISIONS therein are also expressly authorized.
Contrary winds first put us to the northward, and we were obliged to put in at Galway, in Ireland, where we lay wind-bound two-and-twenty days; but we had this satisfaction with the disaster, that provisions were here exceeding cheap, and in the utmost plenty; so that while we lay here we never touched the ship's stores, but rather added to them.
Christopher's, but they had been so long beating up against the wind that they durst take in no passengers, for fear of wanting provisions for the voyage, as well for themselves as for those they should take in; so we were obliged to go on.
Being shut up in the town so long, they had consumed almost all their provisions and burned up all their fuel.
He delayed approaching it as long as possible, in order to avoid driving off the buffaloes, which would be needed for winter provisions.
He felt the necessity, also, of having a greater number of hunters, not merely to keep up a supply of provisions throughout their long and arduous expedition, but also as a protection and defense, in case of Indian hostilities.
And yet that very first day we might have guessed as much from the fact that the working class took practically no part in the great rush to buy provisions.
It did look as though there was going to be at least a temporary food shortage, and I hugged myself over the goodly stock of provisions I had laid in.
In fact, as I afterward surmised, each servant was stealing from me and secreting a private stock of provisions for himself.
As a result, the provisions General Folsom had taken possession of diminished with perilous rapidity.