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Question Practice

If a company does not create a provision for bad debts, what could be a possible consequence?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Accountancy
Accountancy - II
Financial Statements - II
Question Bank

If a company does not create a...

Single Answer MCQ
Q-00053655

If a company does not create a provision for bad debts, what could be a possible consequence?

1

Increased profit reported

2

Reduced cash flow

3

Improved financial health

4

Better credit rating

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