WAEC Accounting 2012 Objective — Question 36
Question 36 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.
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An increase in the provision for doubtful debts results in a/an
- A. increase in the gross profit
- B. decrease in the gross profit
- C. decrease in the net profitCorrect
- D. increase in the net profit
Explanation
When the provision for doubtful debts increases, it means the expenses have increased and this will result in a decrease in net profit.
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