Mumbai Limited is owed 400 by Bangalore plc. Mumbai Limited now regards Bangalore plc as a bad

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Mumbai Limited is owed £400 by Bangalore plc. Mumbai Limited now regards Bangalore plc as a bad debtor. What will be the effect of ‘writing off’ the debt as bad?

(a) No effect on profit, but trade receivables decrease

(b) The bank balance goes down and the profits decrease

(c) Profit decreases, as do current assets

(d) Profit decreases, but no effect on the statement of financial position

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Accounting And Finance For Business

ISBN: 9780273773948

1st Edition

Authors: Geoff Black, Mahmoud Al-Kilani

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Question Posted: Jul 02, 2024 09:01 AM

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Mumbai Limited is owed 400 by Bangalore plc. Mumbai Limited now regards Bangalore plc as a bad

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Accounting And Finance For Business

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