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An increases in the provision for doubtful debts results is a\an

Accounts - Principles of Accounts
WAEC 2012

An increases in the provision for doubtful debts results is a\an

  • A. increase in the gross profit
  • B. decrease in the gross profit
  • C. decrease in the net profit
  • D. increase in the net profit
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Correct Answer: Option C
Explanation

The higher the provision for doubtful debt, the lower the net profit at the end of the period


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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