A-LevelAccountingProvision for Doubtful DebtsOct/Nov 2017Paper 1 Q71 Mark
The following information is available. [Table: provision for doubtful debts at the beginning of the year $6250, trade receivables at the end of the year $93750] Provision for doubtful debts is to be maintained at 6% of trade receivables. Which effect will the provision for doubtful debts have on profit for the year in the income statement?
Adecrease by $625
Bdecrease by $5625
Cincrease by $625
Dincrease by $5625
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of provision for doubtful debts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep