passwella.
Menu

GCE Financial Accounting 1989 Question 48

Question 48

Bad Debts and Provisions

The term Bad Debt means

  1. A.debt written on bad receipts
  2. B.debt owed by a bad person
  3. C.debt that can not be collected
  4. D.overcharge on a debtor's account
  5. E.debt paid with bad currency notes.
Show the answer and explanation

Answer: C (debt that can not be collected)

Explanation

A bad debt is money owed that will never be received, so it is written off.