The concession allowed, when debtors make immediate payment is known as:
Bad debts
Provision
Discount
New provision
A bad debt is:
Profit
Loss
Expenditure
Gain
Out of this, which principle is followed in case of provision for doubtful debts?
Matching principle
Historical principle
Disclosure principle
Revenue recognition principle
What do we do with provision for bad debts in balance sheet?
Added to debtors account
Deducted from debtors account
Added to creditors account
Deducted from creditors account
Writing off bad debts is an example of:
Materiality principle
Consistency principle
Prudence principle
Discount is allowed for:
Written off debts
Doubtful debts
No debts
Creditors
The establishing of a credit limit and the later monitoring of the debtors account is known as:
Credit limit
Credit
Credit control
Over credit
Estimate of the amount which a business will lose in a financial year because of bad debts is known as:
Provision for bad debts
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
The amount owing to a business which is not paid by the debtor.
Bad debt
Gains
