What is difference between Accrual and Provision ?

Accrual and provision are both accounting concepts used to account for expenses and liabilities. Here are the key differences between accrual and provision: Accrual: • Definition: Accrual refers to the recognition of revenues or expenses in financial statements before the associated cash is received or paid. • Purpose: Accrual accounting aims to match revenues and … Read more

Difference between Accrual and Deferral

Accrual and deferral are accounting concepts that refer to the timing of recognizing revenues and expenses in financial statements. The main difference between accrual and deferral is when the recognition of revenue or expense occurs. Accrual: Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of when the actual cash flow … Read more

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