Entities make provision for bad debts in order to:

Name: Entities make provision for bad debts in order to:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Entities make provisions for bad debts to ensure that the trade receivables figure presented in the financial statements reflects a 'true and fair' value, accounting for the likelihood that some receivables may not be collected. This adjustment is necessary for accurate financial reporting and compliance with accounting principles.

Entities Make Provision for Bad Debts in Order To