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O-LevelAccountingThe fundamentals of accounting7707/11 · May/June 2014 · Q181 Mark

At the year end a business wrote off a bad debt. What is the effect of this?

Acapital reduced and current assets reduced
Bcapital reduced and non-current assets reduced
Ccurrent liabilities increased and current assets reduced
Dcurrent liabilities increased and non-current assets reduced

✓ Correct answer

A: capital reduced and current assets reduced

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About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2014 Paper 1 Variant 1, question 18.

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