Irrecoverable debts and provision for doubtful debts — practice question

Which statement correctly describes a provision for doubtful debts?

• AIt ensures that the amount of trade receivables at the year end is realistic.
• BIt is an application of the going concern principle.
• CThe level of the provision must be increased when sales are falling.
• DThe profit for the year increases when the provision for doubtful debts is increased.