Provision

Business, Legal & Accounting Glossary

Definition: Provision


Quick Summary of Provision


A liability of uncertain timing or amount.



What is the dictionary definition of Provision?

Dictionary Definition


  1. An item of goods or supplies, especially food, obtained for future use.
  2. The act of providing, or making previous preparation.
  3. Money set aside for a future event.

Also:

  • An article, clause, or stipulation in an agreement, contract, deed, instrument, or statute that explains a specific condition, effect, implication, qualification, or requirement.
  • To resource/source

Full Definition of Provision


noun

  1. the action of providing or supplying something for use.
  2. An amount or thing supplied or provided.

Similar: facilities, services, amenities, resource(s), equipment, arrangements, solutions, means, offering, funds, benefits, assistance, allowance(s), concession(s), opportunities, supplying, supply, providing, purveying, delivery, furnishing, equipping, giving, donation, allocation, distribution, presentation

verb

  1. Supply with food, drink, or equipment, especially for a journey.
  2. Set aside an amount in an organization’s accounts for a known liability.

Provision, generally, is to prepare in advance for an event that is projected to place in the future. In accounting, it is an amount charged against profits for a specific liability (for example: bad debts, depreciation or taxes). A liability may be known, but the amount is often uncertain. This uncertainty may lead to an adjustment in a later income statement once the final amount of the liability is ascertained.


Examples of Provision in a sentence


We increased our provision for bad debts on credit sales going into the recession.
Financial institutions have to provision against loan losses.
civilian contractors were responsible for provisioning these armies
changing levels of transport provision
new contracts for the provision of services


Synonyms For Provision


supply, provide, providing, offer, delivery

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/provision/
Modern Language Association (MLA):
Provision. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 08, 2020 https://payrollheaven.com/define/provision/.
Chicago Manual of Style (CMS):
Provision. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/provision/ (accessed: July 08, 2020).
American Psychological Association (APA):
Provision. PayrollHeaven.com. Retrieved July 08, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/provision/

Definition Sources


Definitions for Provision are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th April, 2020 | 1,256 Views.