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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 β€” 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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