Advertisements
Advertisements
Question
State whether the following statement is True or False.
Discount allowed to debtors is called as bad debts.
Options
True
False
MCQ
Advertisements
Solution
False
Explanation: The amount that is not recoverable from the debtors is termed as bad debts. It is a loss for the firm. On the other hand, discount may be allowed to debtors in case of early payment.
shaalaa.com
Is there an error in this question or solution?
