1471. Provision for doubtful debts is debited to :
A. Debtors account
B. Bad debts recovered account
C. Profit and loss account *
D. Provision for bad debts account
1472. While making adjusting entries, income received in advance is debited to income account and credited to :
A. Profit and loss account *
B. Bad debts recovered account
C. Debtor’s account
D. Income recieved in advance account
1473. Adjusting entries are made at the end of each business :
A. Day
B. Week
C. Year *
D. Month
1474. Provision, for bad debts account normally has a :
A. Debit balance
B. Credit balance *
C. Both debit and credit balances
D. None of these
1475. From the business point of view, the discount allowed to customer is :
A. A profit
B. A loss *
C. An asset
D. A liability
1476. Business give a cash discount, on making prompt paying to its:
A. Debtors *
B. Creditors
C. Investors
D. Partners
1477. Business recieved discount from its :
A. Debtors
B. Creditors *
C. Investors
D. Partners
1478. The provision for bad debts is made by crediting :
A. Profit and loss account
B. Debtors account
C. Creditors account
D. Provision for bad debts account *
1479. The number of debtors is used to calculate the provision for debtor discount:
A. Before the provision for uncertain debts was deducted
B. After the provision for uncertain debts was deducted *
C. Before deducting the actual bad debts
D. Prior to subtracting the provision for uncertain debts
1480. The provision for discount on creditors is often not provided in keeping with the principle of :
A. Materiality
B. Consistency
C. Conservatism *
D. Realization