Doubtful Debts - 5min Popquiz

5 Questions | Total Attempts: 303

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Doubtful Debts - 5min Popquiz - Quiz

5 questions to test your knowledge about Doubtful Debts in Accounting


Questions and Answers
  • 1. 
    Doubtful debts are closely related to which accounting concept or principle?
    • A. 

      Historical cost

    • B. 

      Conservatism

    • C. 

      Materiality

    • D. 

      Going concern

  • 2. 
    Doubtful debts are the actual losses that the business has incurred from the uncollected money of customer accounts.
    • A. 

      True

    • B. 

      False

  • 3. 
    Which of the following are generally acceptable ways of estimating doubtful debts for an accounting period?
    • A. 

      As a % of total accounts receivable

    • B. 

      As a % of total sales made on account

    • C. 

      As a % of total creditors

    • D. 

      As a fixed amount based on previous periods

  • 4. 
    The account that is created in the Balance Sheet to record the doubtful debts is called the "...................... for Doubtful Debts"
  • 5. 
    Which of the following statements is incorrect?
    • A. 

      Doubtful debts form part of the end-of-period-adjustments

    • B. 

      Accounting for doubtful debts reduces the profits for the accounting period

    • C. 

      Doubtful debts are recorded as a negative asset account in the Balance Sheet

    • D. 

      Under tax law, Doubtful debts are treated the same as Bad debts .

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