Accounting standards require that the provision for doubtful debts should be shown as a deduction from the class of assets to which it relates.The net expense in relation to bad and doubtful debts must also be disclosed.

Question

Quizplus · Accepted Answer

Accounting standards indeed require that the provision for doubtful debts must be deducted from the class of assets it relates to and the net expense related to bad and doubtful debts should be disclosed. This is in compliance with the principle of providing a true and fair view of the financial statements.

Accounting Standards Require That the Provision for Doubtful Debts Should