Bad Debts And Provision For Bad Debts: Meaning - SS1 Accounting Past Questions and Answers - page 1

Amounts owed by a business to its suppliers

Amounts owed to a business by its customers that are unlikely to be paid in full

Expenses incurred by a business on repairing its equipment

Costs associated with shipping products to customers

A legal document that allows a business to recover its bad debts

An accounting entry that sets aside a portion of a company's revenue to cover potential future losses from bad debts

A loan that a business takes to cover its bad debts

A strategy that a business uses to avoid bad debts

Customers not being satisfied with the products

Customers defaulting on their payments

The business not being able to deliver products on time

All of the above

It helps a business to manage its cash flow

It helps a business to avoid bad debts

It helps a business to increase its revenue

It helps a business to reduce its expenses

Bad debts

Provision for bad debts

Accounts receivable

Accounts payable