Provision for bad debt is made as per the
A)Entity Concept
B)Conservatism Concept
C)Cost Concept
D)Going Concern Concept

Question

Quizplus · Accepted Answer

The Conservatism Concept in accounting suggests that potential expenses and liabilities should be recognized as soon as possible, but revenue should only be recognized when it is assured. Therefore, making a provision for bad debts is an application of this concept, as it prepares for potential future losses that may arise from debts that cannot be collected.

Provision for Bad Debt Is Made as Per the