Which statement best distinguishes a provision from a reserve under financial accounting?
AA provision is a reduction in the carrying amount of an asset; a reserve is an increase in equity.
BA provision is for a future uncertain event; a reserve is for a known past event.
CA provision is recognized for a probable present obligation with reliable estimate; a reserve is an appropriation of distributable profits.
DA provision is created when revenue exceeds expenses; a reserve is created when expenses exceed revenue.