Which of the following is not a characteristic of a provision?
A) The liability is known to exist.
B) The precise dollar amount cannot be determined until a later date.
C) The liability should not be recorded in the accounting records until future events have determined the exact amount.
D) The liability stems from past transactions.

Question

Quizplus · Accepted Answer

A provision is recognized when a liability is known to exist, even if the exact amount is uncertain, and should be recorded in the accounting records.

Which of the Following Is Not a Characteristic of a Provision