Complete the Rule (ACCA FA)

Exercise and reference answers

Questions

1. Question

   A debt unlikely to be paid needs an ...

   Correct

   allowance

   Choices

   1. allowance
   2. accrual
   3. asset

2. Question

   Writing off a bad debt creates an ...

   Correct

   expense

   Choices

   1. expense
   2. income
   3. asset

3. Question

   An increase in the allowance is charged as an ...

   Correct

   expense

   Choices

   1. expense
   2. income
   3. equity

4. Question

   A recovered debt previously written off is treated as ...

   Correct

   income

   Choices

   1. income
   2. an asset
   3. a liability

Instructions

Tap the correct word to finish the rule.