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WAEC Accounting 2018 Objective — Question 17

Question 17 of 50 from the West African Examinations Council (WAEC) Accounting 2018 Objective paper, with the correct answer and a full explanation.

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Which of the following activities will increase profits?

  • A. Depreciation charges
  • B. Reduction in provision for doubtful debtsCorrect
  • C. Undervalued closing stock
  • D. Returns inwards

Explanation

A reduction in the provision for doubtful debts is treated as income, adding to (increasing) profit.

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