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 no other provisions have been inserted in the document -- or if, being inserted, those other provisions should be discovered to have failed also -- I believe it to be impossible (especially if evidence can be found that the admiral himself considered the Trust binding on him) for the executors to deal with your husband's fortune as legally forming part of Admiral Bartram's estate.
If this principle be a just one our attention would be directed to a provision in favor of the State governments for an annual sum of about two hundred thousand pounds; while the exigencies of the Union could be susceptible of no limits, even in imagination.
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.
The Shoshokoes, whom they had met with in such scanty numbers on their journey down the river, now absolutely thronged its banks to profit by the abundance of salmon, and lay up a stock for winter provisions.
I took out my small provisions and after having refreshed myself, I secured the remainder in a cave, whereof there were great numbers; I gathered plenty of eggs upon the rocks, and got a quantity of dry sea-weed, and parched grass, which I designed to kindle the next day, and roast my eggs as well as I could, for I had about me my flint, steel, match, and burning-glass.
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.
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.