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a.Increase in Net Profit
b.Increase in Equity
c.Decrease in Net Profit
d.Both a&b
e.None of the above
My answer is D. Both A and B.
Decreasing the bad debts will increase income eventually will increase equity.
Correct Ans is D mean Both A and B
The correct answer is option D) both A & B
it will definitely increase the net profit, just because of decrease in doubtful debts.
agree with answers D is right
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.
d.Both a&b..................................
D is the write answer because due to decrease in provision net profit increases and adn due to profit increase equity also increase
Increase in net profit, which may lead to increase in networth.,so the ans is a & b.
Option d is the correct answer
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