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Why is a provision for bad debts important in a... - SS1 Accounting Bad Debts And Provision For Bad Debts: Meaning Question

Why is a provision for bad debts important in accounting?

A

It helps a business to manage its cash flow

B

It helps a business to avoid bad debts

C

It helps a business to increase its revenue

D

It helps a business to reduce its expenses

correct option: a
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