State with reasons, whether the following statements are true or false: The provision for discount on creditors is often not provided in keeping…
CA Foundation · Accounting · RTP · September 2024
State with reasons, whether the following statements are true or false: The provision for discount on creditors is often not provided in keeping with the principle of conservatism.
Suggested Answer and Working Notes:
True: According to the principle of conservatism provision is maintained for the losses to be incurred in future. Discount on creditors is an income so provision in not maintained.
Topics: True/False
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