Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 7 - No. 16)
How does increasing the provision for doubtful debts affect the income statement?
Increases income and profit for the year.
Decreases income and profit for the year.
Has no impact on income and profit.
Only impacts profit.
Explanation
Increasing the provision is recorded as an expense in the income statement, decreasing profit.
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