Funding - debts - provisions
4 important questions on Funding - debts - provisions
A provision is a kind of piggy bank for unforeseen events.
When a provision is created, equity is converted into liabilities.
When the payment obligation turns out to be lower than for which the provision was estimated, the difference will benefit the operating result.
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Provisions can be used by unreliable managers to manipulate the calculated profit.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
