Question

Match the Following:

• A. Expense
• B. Income
• C. Asset
• D. Liability

Answer 1

• Bad Debts is the debt that is not recoverable, and hence it is treated as an expense.
• Discount received is credited to profit or loss account, and hence it is treated as an income.
• Debtors are the asset of the business as the debtors owes money to business
• Creditors are treated as a liability as a company owes money to them.