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WAEC Financial Accounting 2002 Question 15

Question 15

Bad Debts and Provisions

The term bad debt is used to describe

  1. A.a debt that cannot be recovered
  2. B.a debt that is long over due
  3. C.an overcharge on a debtor's account
  4. D.a debt owned by a former employee.
Show the answer and explanation

Answer: A (a debt that cannot be recovered)

Explanation

A bad debt is one that will never be collected.