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 ?
"Resolved, That in the opinion of Congress it is expedient, that on the second Monday of May next a convention of delegates, who shall have been appointed by the several States, be held at Philadelphia, for the sole and express purpose OF REVISING THE ARTICLES OF CONFEDERATION, and reporting to Congress and the several legislatures such ALTERATIONS AND PROVISIONS THEREIN, as shall, when agreed to in Congress, and confirmed by the States, render the federal Constitution ADEQUATE TO THE EXIGENCIES OF GOVERNMENT AND THE PRESERVATION OF THE UNION."
From these two acts, it appears, 1st, that the object of the convention was to establish, in these States, A FIRM NATIONAL GOVERNMENT; 2d, that this government was to be such as would be ADEQUATE TO THE EXIGENCIES OF GOVERNMENT and THE PRESERVATION OF THE UNION; 3d, that these purposes were to be effected by ALTERATIONS AND PROVISIONS IN THE ARTICLES OF CONFEDERATION, as it is expressed in the act of Congress, or by SUCH FURTHER PROVISIONS AS SHOULD APPEAR NECESSARY, as it stands in the recommendatory act from Annapolis; 4th, that the alterations and provisions were to be reported to Congress, and to the States, in order to be agreed to by the former and confirmed by the latter.
After what I have already written, you will understand that the existence of a sound provision, unknown to us, in the Trust, which has been properly carried out by the admiral -- or which can be properly carried out by his representatives -would be necessarily fatal to our hopes.
If any fund could have been selected and appropriated, equal to and not greater than the object, it would have been inadequate to the discharge of the existing debts of the particular States, and would have left them dependent on the Union for a provision for this purpose.
It is safe to assert that no government proper ever had a provision in its organic law for its own termination.
"Monseigneur, to provision a fleet, to assemble a flotilla, to enroll your maritime force, would take an admiral a year.
With regard to supplies for the army, Napoleon decreed that all the troops in turn should enter Moscow a la maraude* to obtain provisions for themselves, so that the army might have its future provided for.
On reaching the Columbia, Captain Bonneville hoped to open a trade with the natives, for fish and other provisions, but to his surprise they kept aloof, and even hid themselves on his approach.
I ate no other supper, being resolved to spare my provisions as much as I could.
The repeated accidents to their canoes had reduced their stock of provisions to five days' allowance, and there was now every appearance of soon having famine added to their other sufferings.
Here we spent our time and our provisions, without being able to procure any more.
One cartload of the enemy's provisions is equivalent to twenty of one's own, and likewise a single picul of his provender is equivalent to twenty from one's own store.