The provision for loan losses, for accounting purposes, is classified as a (an):

Name: The provision for loan losses, for accounting purposes, is classified as a (an):
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The provision for loan losses is classified as an expense for accounting purposes. It represents an estimate of potential losses that a bank or financial institution expects to incur from defaulted loans, and it is recorded on the income statement as an expense to reflect the cost associated with the risk of lending.

The Provision for Loan Losses, for Accounting Purposes, Is Classified