Diff between Accural and provision, BRS

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Accepted Answer

Accrual is recognition of revenue/expenses when earned/incurred, provision is setting aside funds for future liabilities, BRS is reconciling bank statements.

Accrual involves recognizing revenue or expenses when they are earned or incurred, regardless of when cash is received or paid.
Provision involves setting aside funds to cover future liabilities or expenses that are likely to occur but have not yet been realized.
Bank Reconciliation Statement (BRS) is the process of comparing the company's records of its bank account with the bank's records to ensure they match.
Accruals and provisions are both accounting concepts used to accurately reflect the financial position of a company.
Example: Accrual - recognizing revenue when services are provided, even if payment has not been received. Provision - setting aside funds for potential legal claims.
Example: BRS - comparing the company's records of deposits and withdrawals with the bank's records to identify any discrepancies.

Diff between Accural and provision, BRS

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