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    Question

    A provision differs from a contingent liability because

    provision:
    A Is a present obligation from past events, probable outflow and reliable estimate — recognised in books Correct Answer Incorrect Answer
    B Is always off-balance sheet Correct Answer Incorrect Answer
    C Is only disclosed when inflow probable Correct Answer Incorrect Answer
    D Is a tax refund receivable Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Provisions are recognised; contingent liabilities disclosed.

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