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provision (accounting)

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Provision is an amount set aside out of profits in the accounts of an organisation for a known liability (even though the specific amount might not be known) or for the diminution in value of an asset. Common examples include Provision for bad debts, Provision for depreciation and
also provision for accrued liabilities.
(source: http://www.allinterview.com/showanswers/65330.html)

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