Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › Making an excessive provision for doubtful debts…
Making an excessive provision for doubtful debts may result in what?
AA capital reserve
BA revenue reserve
CA general reserve
DA secret reserve
Answer & Solution
Correct answer: D. A secret reserve
Excess provision understates profit and assets, and the hidden excess forms a secret reserve.
Related questions
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