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متابعة

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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تم إضافة السؤال من قبل Shamseer KM , HR Payroll Officer , Al Darwish Engineering W.L.L
تاريخ النشر: 2015/10/12
Michael Lagunday
من قبل Michael Lagunday , Accountant , Dubai Camel Racing Club

My answer is D. Both A and B.

 

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

Muhammad Aamir Ayaz
من قبل Muhammad Aamir Ayaz , Accounts Executive , Kanzo Ag

Correct Ans is D mean Both A and B

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

The correct answer is option D) both A & B

FAROOQ NASIR
من قبل FAROOQ NASIR , ACCOUNTS ASSISTANT , NATIONAL TELECOMM CORPORATION

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

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

agree with answers D is right

Hossam Mohamed
من قبل 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
من قبل Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

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

Muhammad Azam
من قبل 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
من قبل 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
من قبل Toyin Adun-FCA-MBA-Finance-CMA , Finance Manager , Emirates Business Group

Option d is the correct answer

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