Question Tag: Closing Accounts

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FA – Nov 2014 – L1 – SA – Q6 – Accounting Treatment for Bad and Doubtful Debts

Identifying where the bad debts account is closed at the year-end in financial statements.

In preparing financial statements, the bad debts account is closed by a transfer to:

A. Statement of financial position
B. Provision for bad debt account
C. Statement of profit or loss
D. Trading account
E. Statement of cash flows

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FA – Nov 2014 – L1 – SA – Q6 – Accounting Treatment for Bad and Doubtful Debts

Identifying where the bad debts account is closed at the year-end in financial statements.

In preparing financial statements, the bad debts account is closed by a transfer to:

A. Statement of financial position
B. Provision for bad debt account
C. Statement of profit or loss
D. Trading account
E. Statement of cash flows

Login or create a free account to see answers

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