A decrease in provision for doubtful debts would result in ______?
Accounting / Accounting MCQs — Multiple-choice practice
مشکوک قرضوں کی فراہمی میں کمی کا نتیجہ ______ کا نتیجہ ہوگا؟
- A. An increase in net liabilities
- B. A decrease in net profit
- C. An increase in net profit
- D. None of these
Correct answer
An increase in net profit
Explanation
Explanation A decrease in the provision for doubtful debts would increase net profit. This is because the provision for doubtful debts is a liability, and a decrease in a liability results in an increase in profit.
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