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WAEC Financial Accounting 2020 Question 24

Question 24

Final Accounts of a Sole Trader

A non-cash expense chargeable against profit and loss account is

  1. A.insurance payable.
  2. B.debenture interest.
  3. C.provision for doubtful debts.
  4. D.rent and rates.
Show the answer and explanation

Answer: C (provision for doubtful debts.)

Explanation

A provision is a book entry with no cash paid.