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Finance and accounts

Difference Between Provision and Liability

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  Provision and liability are two accounting concepts that represent different aspects of financial obligations or potential expenses for a business. Followings are differences between provision and liability: Provision: As per Ind AS 37,  provision is a liability of uncertain timing or amount.  In simple words  provision is an estimated liability or expense that is … Read more

Difference between Revenue and capital expenditure

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Organization may incur two different sorts of expenses: revenue expenditure and capital expenditure. Their nature and effect on the financial accounts are where they differ most from one another. An explanation of each follows: Revenue Expenditure: Revenue expenditure refers to expenses incurred by a business that are related to its day-to-day operations and are consumed … Read more