Refresh or test your accounting knowledge by answering the following questions on Discounts, Bad Debts and Provisions
| QUESTIONS:
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?
|