A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2013 · Q21 Mark
A business wishes to create a new provision for doubtful debts. Which effect will this have in the financial statements of the business? in the income statement in the statement of financial position
Aincrease profit
increase current assets
Bincrease profit
reduce current liabilities
Creduce profit
increase current liabilities
Dreduce profit
reduce current assets
✓ Correct answer
D: reduce profit reduce current assets
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