SEO MCQ Question Page

Which statement best explains Provision for doubtful debts?

Practice this MCQ with options, instant answer checking, explanation, exam-wise filters, next/previous navigation and shareable result image.

Question ID #26869 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 4 Medium

Which statement best explains Provision for doubtful debts?

Correct Answer: C. Estimate of receivables that may become uncollectible
Provision for doubtful debts: Estimate of receivables that may become uncollectible

Question: Which statement best explains Provision for doubtful debts?

A. Expenditure whose benefit is generally consumed within the current accounting period

B. Depreciation method applying a rate to the carrying amount of an asset

C. Estimate of receivables that may become uncollectible

D. Book containing individual accounts to which journal entries are posted

Correct Answer: C. Estimate of receivables that may become uncollectibleProvision for doubtful debts: Estimate of receivables that may become uncollectible

← Previous Question Next Question →

Which statement best explains Provision for doubtful debts? - MCQ Explanation

This question is useful for exam preparation because it provides direct multiple-choice practice with options, answer checking and explanation.

Correct answer: C. Estimate of receivables that may become uncollectible