A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?
A. Net profit would decrease
B. Net profit would increase
C. Gross profit would overstate
D. Gross profit would understate
Answer: Option B
Solution(By Examveda Team)
A firm has not recorded the bad debts by mistake. Net profit would increase is the effect of bad debt ommission.This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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