Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 12 - No. 17)
What is the main reason for providing a provision for doubtful debts?
To increase a company's assets.
To show a more realistic view of trade receivables.
To decrease a company's liabilities.
To boost profit.
Explanation
The provision aims to reduce the trade receivables to the amount that the company realistically expects to collect.
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