Accounting Multiple Choice Question – 28 August 2017

How will the recovery of a debt, previously written off, affect the profit, current assets and capital of a business?

Select ONE answer:

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What is the definition of a bad debt?
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This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – Recovery of a debt, previously written off, will reverse the original transaction which was Dr Profit Cr Current Assets, leading to a increase in retained profits.

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