Skip to content

Ask the Tutor ACCA FA

RECEIVABLE AND PAYABLE LEDGER

Kkumar105y ago
relative to not having a provision for bad or doubtful debts, the existence of such a provision A. increases the total of current liabilities B. Reduces the cost of sales C. Reduces the total of current assets D. None of the above ANSWER; D how is the answer D shouldn't the answer be C since existance of allowance would decrease receivable and hence total of current assets
John MoffatJohn MoffatTutor5y ago#1
The answer is C.
Sign into reply to this topic.