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Examveda

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.

This Question Belongs to Commerce >> Accounting

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Comments ( 1 )

  1. Ikbasir Student
    Ikbasir Student :
    2 years ago

    The ans should be Matching principal!

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