Vidyalelo
Commerce · Q188

Accounting

Graduate and Post Graduate · Commerce · question 188

Q188

Which of the following is the effect on net income if a business decreases its provision for bad debts?

A.
It will increase net income
Answer
B.
It will decrease net income
C.
No effect
D.
It will increase gross profit and net income

Answer: Option A

Solution

Answer: Option A
Solution:
Net income will increase is the effect on net income if a business decreases its provision for bad debts.