What is the difference between provision and reserve

[Stardom22]

Provision it is because of the legal necessity's while reserve is an appropriation of profits.

 

[Asfa]

Reserve is in another way called a favor for yourself but provisions is for others

 

[eldavis]

Reserve could also mean what has been kept aside for future use. It could be for difficult situations or to sort out certain issues, it all depends. Provisions could be what is needed to be used at the moment.

 

[Stardom22]

In business provision refers to the availing the goods and services on the business for the customers to buy while reserve refers to what has been kept aside or all that is in hold for some time for future use

 

[Chibson]

Yes, you are very correct on this. Reserve is usually kept for the future especially for uncertainties. It is very necessary in any business venture.

 

[Niyi Briggs]

I want to assume you are asking in the context of the financial sector. Reserves are funds kept in a higher financial authority to mitigate against losses in future. Provision are the funds meant to use and work at the moment.

 

[uptrendfinancialsignal]

The difference between provisions and reserve is very huge because provision deals with menial items.

 

[Bisolami]

The difference between provisions and reserve is very huge because provision deals with menial items.

It is true and reserve is what you have kept for future purpose

 

[Chibson]

I want to assume you are asking in the context of the financial sector. Reserves are funds kept in a higher financial authority to mitigate against losses in future. Provision are the funds meant to use and work at the moment.

You're right, provisions are mostly used for immediate use while reserves are kept for the future. It will be used against any unforeseen circumstances.

 

[Magnus2022]

Provision is for immediate use while reserve is for future use. A kind of a protection against uncertainties in future. Provision is what is needed for now. In business especially in investment in high risk markets, reserve is very important.

 

[Niyi Briggs]

Provison are variable and fixed inputs used to continuously run a business. Reserves are resources kept aside so the business can fall back on in terms of emergency.

 

[IB D]

As the name implies, reserves are the part that is kept aside. It is not necessarily be money. It can be materials that are not perishable. It is kept for periods of scarcity of those inputs.

 

[Chibson]

Yeah, reserves are kept in case of emergencies for a business venture. During the Corona virus pandemic businesses that have reserves were actually able to survive.

 

[flower]

Yeah, reserves are kept in case of emergencies for a business venture. During the Corona virus pandemic businesses that have reserves were actually able to survive.

The reserve is also very critical for businesses to have because it will serve as where the business will fall back on in case of emergencies.

 

[IB D]

Business reserves must not be in cash only. It can also be in the form of materials and inputs. You can have what we call a reserve ratio.

 

[Chibson]

The reserve is also very critical for businesses to have because it will serve as where the business will fall back on in case of emergencies.

Yeah, reserve is always important in a business venture. Without reserves the business may go extinct when the first some major problems.

 

[Etini Willie]

In my business, I use to set aside some part of inventory and keep as reserves. I sell honey and I always keep two bottles of honey per batch so I can sell in case there is a time when I can't get supply of honey.

 

[cherry123]

I believe reserve is about keeping aside assets for future use. It always good to always keep something's for the future. it can help during any emergencies. Everyone should do this

 

[Heatman]

Provision it is because of the legal necessity's while reserve is an appropriation of profits.

Unfortunately, I don't understand what you're talking about in this thread. I'm going to have to ask for further clarification on this, otherwise I will have to lock the thread.

 

[uptrendfinancialsignal]

There is a big difference between reserved and provisions and it is important to get to know the difference.