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