Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 11 - No. 4)
What is the impact of an increase in the provision for doubtful debts on the Financial statements of the business?
Increases the value of trade receivables.
Decreases the value of trade receivables.
Increases profit.
No change to the Financial statements
Explanation
An increase in the provision for doubtful debts reduces the value of trade receivables and profit recorded in the financial statements of the business.
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