Bad debts recovered is treated as a:
Dependent income
Independent income
Dependent loss
Independent loss
Where will be the difference between provision for bad debts posted?
Profit and loss account
Balance sheet
Journal
Ledger
Estimate of the amount which a business will lose in a financial year because of bad debts is known as:
Provision for bad debts
Bad debts
Written off debts
Credit control
The amount of bad debts is:
Profit
Income
Expenditure
Loss
When the account of the debtor has been closed, what do you with cash book?
Debited
Credited
Not recorded
Neither debited nor credited
Where will the debts be posted in profit and loss account?
Credit
Debit
In the loss side
The amount owing to a business which is not paid by the debtor.
Bad debt
Gains
At the end of the year, bad debts recovered account is transferred to the bad debts account. This will be:
Loss of the year
Reduces the bad debts written off during the year
Not affect at all
Increases the profit
The concession allowed, when debtors make immediate payment is known as:
Provision
Discount
New provision
At the end of the year, a bad debt recovered is treated as:
Profit of the year
Expense
Income of the year
