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What is the impact of the provision for doubtful debts on the recognition of bad debts?
  • a)
    It delays the recognition of bad debts.
  • b)
    It has no impact on bad debts.
  • c)
    It accelerates the recognition of bad debts.
  • d)
    It reduces the need for bad debt expense.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the impact of the provision for doubtful debts on the recognit...
The provision for doubtful debts accelerates the recognition of bad debts. By estimating and recording potential bad debts as soon as invoices are issued, companies can account for these losses in earlier reporting periods. This helps in reflecting a more accurate financial position and aligning with the matching principle.
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What is the impact of the provision for doubtful debts on the recognition of bad debts?a)It delays the recognition of bad debts.b)It has no impact on bad debts.c)It accelerates the recognition of bad debts.d)It reduces the need for bad debt expense.Correct answer is option 'C'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the impact of the provision for doubtful debts on the recognition of bad debts?a)It delays the recognition of bad debts.b)It has no impact on bad debts.c)It accelerates the recognition of bad debts.d)It reduces the need for bad debt expense.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the impact of the provision for doubtful debts on the recognition of bad debts?a)It delays the recognition of bad debts.b)It has no impact on bad debts.c)It accelerates the recognition of bad debts.d)It reduces the need for bad debt expense.Correct answer is option 'C'. Can you explain this answer?.
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