Accounting 0452 · IGCSE · Irrecoverable debts and provision for doubtful debts

Irrecoverable debts and provision for doubtful debts — practice question

At the close of the financial year, Karim chose to raise his provision for doubtful debts. What effect will this have on his income statement and the statement of financial position?

  • Aincome statement: decrease expenses; statement of financial position: increase current assets
  • Bincome statement: decrease expenses; statement of financial position: increase current liabilities
  • Cincome statement: increase expenses; statement of financial position: decrease current assets
  • Dincome statement: increase expenses; statement of financial position: decrease current liabilities

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI