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