Refresh or test your accounting knowledge by answering the following questions on Discounts, Bad Debts and Provisions
1.0 Distinguish between trade discount, cash discount and settlement discount
2.0 How is cash discount treated for accounting purposes?
3.0 How are bad debts treated for accounting purposes?
4.0 A decrease in the provision for doubtful debts is recorded as an expense in the income statement – true or false
5.0 How is a provision for doubtful debts disclosed in the balance sheet?