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Which statement best explains Provision for doubtful debts?

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Question ID #25894 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 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

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

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