Provision for bad and doubtful debts is based on the principle of
Accounting conservatism is a principle that requires company accounts to be prepared with caution and high degrees of verification. All probable losses are recorded when they are discovered, while gains can only be registered when they are fully realized. The principle of conservatism means that a company shoul · record for the anticipated losses and expenses · but do not record the anticipated profits or gains As such, Provision for Doubtful debt is based on recording anticipated losses. The debtors have not defaulted yet, but if you are anticipating a default in the future, record it as an expense now.
Two pipes A and B can fill a cistern in `27 1/2` minutes and 35 minutes respectively. Both pipes are opened. The cistern will be filled in just 25 minut...
Pipes X and Y can independently fill a tank in 80 minutes and 90 minutes respectively, while pipes X and Z together take 3 hours to fill the same tank. ...
Tap A can fill a tank in 8 hours. Tap B can fill 12.5% part of the same tank in 2 hours, whereas Tap C can alone empty a tank in ‘x’ hours. 5/8 part...
Pipe ‘A’ can fill 25% of a tank in 6 hours while pipe ‘B’ takes 40 hours to empty fully filled tank. Pipe ‘A’ is ope...
Pipe ‘A’ and pipe ‘B’ can fill a cistern in 20 minutes and 12 minutes respectively. Pipe ‘C’ alone can empty the cistern in 10 minutes. If a...
Pipe A and B can fill the pool in 36 minutes and 48 minutes, respectively. Pipe C can empty half filled pool in 36 minutes. If all the pipes are opened ...
A tank can be filled by a tap in 10 minutes and by another tap in 30 minutes. Both the taps are kept open for 5 minutes and then the first tap is shut o...
If a tank can be filled by a tap in 14 hours, but due to an outlet, it actually takes 7 hours longer to fill the tank, find the duration in which the ou...
Pipe ‘A’ and pipe ‘B’, together can fill 20% of a tank in 6 hours while pipe ‘C’ takes 34 hours to empty it. ...
A Tank has two pipes one can fill it with water in 16 hours and other can empty it in 10 hours. In how many hours will the Tank be emptied if both the p...