The key difference between provisions and liabilities is:

Question

Quizplus · Accepted Answer

The key difference between provisions and liabilities is the uncertainty regarding the amount or timing of the future sacrifice of economic resources. A provision is recognized when there is uncertainty about the amount or timing of a future obligation, whereas a liability is recognized when there is a present obligation arising from a past event. The party that the obligation is owed to and whether the obligation is current or non-current are factors that determine the classification of the provision or liability, but they are not the key difference between them.

The Key Difference Between Provisions and Liabilities Is