Wendy maintains a provision for doubtful debts. Which statements are correct? 1. It is an application of

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Wendy maintains a provision for doubtful debts. Which statements are correct?

1. It is an application of the matching principle.
2. It is an application of the prudence principle.
3. It is an estimate of what may be lost because of irrecoverable debts.
4. It is money set aside to cover losses because of irrecoverable debts.

A. 1, 2 and 3

B. 1 and 4

C. 2 and 3

D. 2, 3 and 4

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Cambridge IGCSE And O Level Accounting Coursebook

ISBN: 9781316502778

2nd Edition

Authors: Catherine Coucom

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Question Posted: Sep 16, 2021 01:48 AM

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Wendy maintains a provision for doubtful debts. Which statements are correct? 1. It is an application of

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D 2 3 and 4 A provision for doubtful debts is an estimate of what may be lost because of irrecoverab...View the full answer

Cambridge IGCSE And O Level Accounting Coursebook

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