Provision for bad debts is made as per the
A. Conservatism concept
B. Cost concept
C. Consistency concept
D. Going concern concept
Answer: Option A
Solution(By Examveda Team)
Provision for bad debts is made as per the Conservatism concept. The conservatism principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received.Join The Discussion
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Related Questions on 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
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Patents, Copyrights and Trademarks are
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B. Fixed assets
C. Intangible assets
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The ans should be Matching principal!