For an item to be recorded as a provision,there must be:
A)a present obligation and a probable outflow of economic resources
B)a future obligation and a possible outflow of economic resources
C)a present obligation and a possible outflow of economic resources
D)a future obligation and a probable outflow of economic resources

Question

Quizplus · Accepted Answer

A provision is recognized if and only if there exists a present obligation (either legal or constructive) that results from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

For an Item to Be Recorded as a Provision,there Must