Question: Question 4 Businesses often create provision for doubtful debts. [Total 10 marks] 4.1 Of which concept/convention is this an example? Explain. (4 marks) 4.2

Question 4 Businesses often create provision for doubtful debts. [Total 10 marks]

Question 4 Businesses often create provision for doubtful debts. [Total 10 marks] 4.1 Of which concept/convention is this an example? Explain. (4 marks) 4.2 What is the purpose for creating the provision for doubtful debts? (3 marks) 4.3 What is the difference between bad debts and the provision for doubtful debts? (3 marks)

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