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I. A provision is a present obligation which may either be legal or constructive. II. Even if a provision is a result of past event, future events may be used to estimate it.

I. A provision is a present obligation which may either be legal or constructive. II. Even if a provision is a result of past event, future events may be used to estimate it.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consider the following statements:

a. Only Statement I is true.
 
b. Only Statement II is true.
 
c. Both Statements I and II are true.
 
d. Neither Statement I nor II is true.
I. A provision is a present obligation which may either be legal or constructive. II. Even if a provision is a result of past event, future events may be used to estimate it.
Transcribed Image Text:I. A provision is a present obligation which may either be legal or constructive. II. Even if a provision is a result of past event, future events may be used to estimate it.
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