All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  Provision for doubtful debts will appear unde... Start Learning for Free
SaveJoin the Discussion on the App
Provision for doubtful debts will appear under:
  • a)
    Long – term Provisions
  • b)
    Short – term Provisions
  • c)
    Reserves and Surplus
  • d)
    Other Current Assets
Correct answer is option 'B'. Can you explain this answer?
FREE This question is part of
Download PDF Attempt Test
Download PDF Attempt this Test
Verified Answer
Provision for doubtful debts will appear under:a)Long – term Pro...
While preparing companies balance sheet trade receivables are shown without deducting the provision for doubtful debts and it is shown in the liabilities side under short term provisions.
View all questions of this test
Most Upvoted Answer
Provision for doubtful debts will appear under:a)Long – term Pro...
The answer will be b. As short term provisions are the amount set aside for meeting future liability for a particular year and provision for bad and doubtful debts are short term provisions as these are made on the basis past experiences each year. The estimated value is set aside as an expense which appears either on asset side under debtors heading (detucted from debtors) or comes directly on the liability side.
Free Test
FREE
Start Free Test
Start Free Test
Community Answer
Provision for doubtful debts will appear under:a)Long – term Pro...
It is short-term provision as it is for the doubtful bad debts, and debtors can become bad debt anytime in the future year, so it is used to fulfill the short term liabilities
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
< Previous Question Next Question >
Explore Courses for Commerce exam

Similar Commerce Doubts

Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability____________ means setting aside a part of the profits for meeting a known future liability.

Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability____________ means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise.

Top Courses for CommerceView all

Top Courses for Commerce

Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer?
Question Description
Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Provision for doubtful debts will appear under:a)Long – term Provisionsb)Short – term Provisionsc)Reserves and Surplusd)Other Current AssetsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup