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A decrease in the provision for bad and doubtful debt result in _?

a.Increase in Net Profit

b.Increase in Equity

c.Decrease in Net Profit

d.Both a&b

e.None of the above

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Question ajoutée par Shamseer KM , Accounts and Admin Payroll , KBM Group
Date de publication: 2015/10/12
Michael Lagunday
par Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

My answer is D. Both A and B.

 

Decreasing the bad debts will increase income eventually will increase equity.

Muhammad Aamir Ayaz
par Muhammad Aamir Ayaz , Internee , Dawood Lawrencepur Limited

Correct Ans is D mean Both A and B

IMRAN ALI MOHAMMED
par IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

The correct answer is option D) both A & B

Utilisateur supprimé
par Utilisateur supprimé

Answer D is the right option .

FAROOQ NASIR
par FAROOQ NASIR , ACCOUNTS ASSISTANT , NATIONAL TELECOMM CORPORATION

it will definitely increase the net profit, just because of decrease in doubtful debts. 

حسين محمد ياسين
par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answers D is right

Hossam Mohamed
par Hossam Mohamed , Chief Accountant , Bonne Maniere Catering

Both A&B  as the provision is a percentage of the profit  companies reserve it for such a future cases so once you decrease this percentage this will directly affect the net profit which is sure affecting the Equity.

 

 

Salah Othman Yousef Alshambaati
par Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

d.Both a&b..................................

Muhammad Azam
par Muhammad Azam , Senior.Accountant , Sitara Chemical Industries Limited

D is the write answer because due to decrease in provision net  profit increases and adn due to profit increase equity also increase

 

ravi chandra gundepudi
par ravi chandra gundepudi , Senior Manager - Credit Analyst - Corporate Banking , Bank Dhofar SAOG

Increase in net profit, which may lead to increase in networth.,so the ans is a & b.

Toyin Adun-FCA-MBA-Finance-CMA
par Toyin Adun-FCA-MBA-Finance-CMA , Finance Manager , Emirates Business Group

Option d is the correct answer

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