Writing off bad debts is an example of:
Materiality principle
Consistency principle
Prudence principle
Disclosure principle
A bad debt is:
Profit
Loss
Expenditure
Gain
The amount owing to a business which is not paid by the debtor.
Bad debt
Credit
Gains
The amount of bad debts is:
Income
Where will you show new bad debts and new provision for bad debts?
Debit side of profit and loss account
Credit side of profit and loss account
Trial balance
Liability side of balance sheet
Where will the debts be posted in profit and loss account?
Not recorded
Debit
In the loss side
The bad debt is treated in profit and loss account as:
Expense
The concession allowed, when debtors make immediate payment is known as:
Bad debts
Provision
Discount
New provision
Why each business try to anticipate the amount which will be a loss because of bad debts?
To reduce tax
For a clear statement
For taking loans
To arrive at correct profit
Discount is allowed for:
Written off debts
Doubtful debts
No debts
Creditors
