Bad debts recovered is:

Related Mcqs:

1. If actual bad debts are more than the provision for bad debts, then there will be a_____________?

   A. Credit balance of Provision for Bad Debts Account
   B. Debit balance of Provision for Bad Debts Account
   C. Debit balance of Bad Debts Account
   D. Debit balance of Discount on Debtors Account

2. Bad debts recovered account will be transferred to______________?

   A. Debtor‘s Account
   B. Profit and Loss Account
   C. Provision for Doubtful Debt Account
   D. Either B or C above

3. The entry for creating a Provision for bad debts is_____________?

   A. Debit Provision for Bad Debts A/c and credit Debtors A/c
   B. Debit Debtors A/c and credit Provision for Bad Debts A/c
   C. Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
   D. Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.

4. At the time of preparation of financial accounts, bad debt recovered account will be transferred to?

   A. Debtors A/c
   B. Profit & Loss A/c
   C. Profit & Loss Adjustment A/c
   D. Profit & Loss Appropriation A/c

5. Debts which are payable in the course of a month are called _____________?

   A. External liabilities
   B. Fixed liabilities
   C. Current liabilities
   D. Liquid Liabilities

6. The creation of provision for doubtful debts given as an adjustment requires____________?

   A. Debit Profit and Loss Account and deduct the provision from debtors
   B. Credit Profit & Loss Account and deduct the provision from debtors
   C. Credit Profit and Loss Account and add the provision to debtors
   D. Debit Profit & Loss Account and add the provision to debtors

7. An increase in provision for bad debt will____________?

   A. Decrease net income
   B. Decrease liabilities
   C. Increase net income
   D. Increase liabilities

8. Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?

   A. The bad debt expense is not matched with the related sales
   B. Revenue is overstated in the year of sales
   C. It violates the matching principle of accounting
   D. All of the above

9. Credit note is the basis for recording a transaction in which of the following SPECIALIZED journals?

   A. Purchase journal
   B. Sales return journal
   C. General journal
   D. Cash receipt journal

10. The Balance Sheet gives information regarding the____________?

    A. Results of operations for a particular period
    B. Financial position during a particular period
    C. Profit earning capacity for a particular period
    D. Financial position as on a particular date