CAT Questions

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Economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.

The president is responsible for the executive branch of the government. The three branches of the government are :

1. Legislative

2. Executive

3. Judicial

Bad debts expense often refers to the loss that a company experiences because it sold goods or provided services and did not require immediate payment. The loss occurs when the customer does not pay the amount owed. In other words, bad debts expense is related to a company's current asset accounts receivable.

You have already recorded the Rs. 100 in your accounts receivable, and you need to eliminate that amount. As you use double-entry accounting, you must record a Rs. 100 credit to your accounts receivable and a Rs. 100 debit to your allowance for doubtful accounts or your bad debts expense column.