Q290
Provision for bad debts is made as per the
A.
Conservatism concept
AnswerB.
Cost concept
C.
Consistency concept
D.
Going concern concept
Answer: Option A
Solution
Answer: Option A
Solution:
Provision for bad debts is made as per the Conservatism concept. The conservatism principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received.