O-LevelAccountingAccounting procedures7707/13 · Oct/Nov 2024 · Q191 Mark

Which statements about irrecoverable debts are correct? 1 They are an application of the historic cost principle. 2 They are debts which will not be paid by credit customers. 3 They increase the value of current liabilities. 4 They reduce the total value of trade receivables.

A1 and 2

B1 and 4

C2 and 3

D2 and 4

✓ Correct answer

D: 2 and 4

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2024 Paper 1 Variant 3, question 19.

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