What is the natural account balance for provisions? A. Debit and Credit B. Credit C. No balance D. Debit

To determine the natural account balance for provisions, we first need to understand the nature of provisions in accounting. Provisions are liabilities or obligations that a company anticipates but does not yet know the exact amount or timing for.

1. Understanding Provisions: Provisions are typically related to future expenses (like warranties or taxes) that are expected to be incurred but haven't yet been recognized. This means that when accounted for, provisions increase the liabilities on the balance sheet.

2. Account Nature: The nature of the account (whether it typically carries a debit or credit balance) is crucial in this context. Since provisions are considered liabilities, they generally have a credit balance.

With this understanding, the natural account balance for provisions is:

Final Answer

B. Credit