1 View

Question : Writing off bad debts against the provision for doubtful debts; would result in inflow/outflow/no flow of Cash and Cash Equivalents:

Option 1: Inflow of cash

Option 2: Outflow of cash

Option 3: Neither inflow Nor outflow

Option 4: Cash and cash equivalent


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: Neither inflow Nor outflow


Solution : Answer = neither inflow nor outflow of cash

If bad debt is written off against provision for doubtful debts would result in no flow of cash
Provision for doubt full debt A/ C Dr
To Bad debts A/c
Hence, the correct option is 3.

Related Questions

Pearl Academy B.Des Admission...
Apply
No. 1 Design & Fashion Institute by ASSOCHAM, India Today, Outlook and The Week rankings
UPES B.Des Admissions 2025
Apply
Ranked #46 amongst Universities in India by NIRF | Ranked #1 in Academic Reputation in India by QS World University Rankings
Symbiosis Institute of Design...
Apply
Pre-placement as well as placements offered
DSU- Dayanand Sagar Universit...
Apply
60+ Years of Education Legacy | UGC & AICTE Approved | Prestigious Scholarship Worth 6 Crores
Woxsen University Design Admi...
Apply
Ranked 2nd in the IIRF 2023 Design School Ranking | Approved by AICTE | Highest CTC 13 LPA
BITS Design School B.Des Admi...
Apply
B.Des Admissions open for 2025 | 186K+ Alumni
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books