Answer-A provision for onerous contract is:

An onerous contract is one in which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received. A provision is recognized for the present obligation under such a contract.

Question

A provision for onerous contract

is:

A A liability recognised when unavoidable costs exceed economic benefits under contract

B A contingent asset

C Treated as deferred tax only

D Written off against revaluation reserve

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More Accounts Questions

Find the Value of
What will come in place of (?) in the given expression.

(14)² – (12)² = ?
(42% of 1500 + 170) ÷ 4 = ?² - 5²
15848 ÷ 4 – 793 × 6 + 3628 = 3 × ?
Evaluate: (936 ÷ 12) × (225 ÷ 15) − (144 ÷ 12) × 18
1360 ÷ 8 + 490 ÷ √49 + ? = 150 × 2
215 + 378 – 23 + 15 - 27 = ? + 3² + 16²
40% of (362 ÷ 0.05) = ?
(20% of 15% of 600 – 6) × 5 + 84 = ?²
What will come in the place of question mark (?) in the given expression?

35 X 72 + 35 X 28 = ? X √16

A provision for onerous contract

Solution