An increases in the provision for doubtful debts results is a\an

Assessment: WAEC SSCE - Financial Accounting - 2012 (Objective) Subject: Financial Accounting

Question 1 Report

An increases in the provision for doubtful debts results is a\an

Answer Details
An increase in the provision for doubtful debts means that the company is setting aside more money to cover the possibility of customers not paying their debts. This increases the expenses of the company and decreases the net profit. Therefore, the answer is a decrease in the net profit.
Read lesson note on Provisions And Reserves (WAEC)
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