Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 15 - No. 26)
Which of the following is the best definition of an irrecoverable debt?
A debt that has been paid but not yet recorded.
A debt that a company expects to collect in the future.
A debt that a company does not expect to be able to collect.
A debt that has been collected.
Explanation
An irrecoverable debt is one that a company expects to be unable to collect, hence it needs to be written off.
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