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?
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A provision for bad debts is important in accounting because it sets aside a portion of a company's revenue to cover potential future losses from bad debts, which helps a business to manage its cash flow and ensure that its financial statements accurately reflect its financial position.
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