Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 29 - No. 25)
What is the impact on the income statement when a provision for doubtful debts is increased?
An increase in expenses and a decrease in profit.
A decrease in expenses and an increase in profit.
An increase in revenue and an increase in profit.
A decrease in revenue and a decrease in profit.
Explanation
Increasing the provision for doubtful debts is an expense, decreasing profit on the income statement.
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