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 A decrease in the provision for bad and doubtful debts results in____
  • a)
    Increase in Net Profit
  • b)
    Increase in Equity
  • c)
    Decrease in Net profit
  • d)
     Both (a) & (b)
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A decrease in the provision for bad anddoubtful debts results in____a)...
As what we kept as a provision if any chance of bad debts comes, had decreased ...then our net profit will rise...Not only that our profit is our equity as owner's equity is capital....
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Community Answer
A decrease in the provision for bad anddoubtful debts results in____a)...
If decrease in provision for bad debts means credit side increased therefore there is rises profit
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A decrease in the provision for bad anddoubtful debts results in____a)Increase in Net Profitb)Increase in Equityc)Decrease in Net profitd)Both (a) (b)Correct answer is option 'D'. Can you explain this answer?
Question Description
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