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WAEC Financial Accounting 2018 Question 17

Question 17

Final Accounts of a Sole Trader

Which of the following activities will increase profits?

  1. A.Depreciation charges
  2. B.Reduction in provision for doubtful debts
  3. C.Undervalued closing stock
  4. D.Returns inwards
Show the answer and explanation

Answer: B (Reduction in provision for doubtful debts)

Explanation

A reduction in the provision is credited to profit and loss.