JAMB Accounting 2021 Objective — Question 23

Question 23 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.

23. A reduction in provision for doubtful debts is a/an a. Income b. Expense c. Asset d. Liability

A. IncomeCorrect
B. Expense
C. Asset
D. Liability

Explanation

A reduction in provision for doubtful debts is an income because the provision was initially written off as an expense; recovering (reducing) it serves as an income.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2021 Objective More Accounting past papers