. The directors of Repro Ltd are anxious to improve the profit to be reported for the accounting period just ended. Which of the following would improve the profit reported? a) Increasing the rate of provision for doubtful debts from 10% to 12% of all balances over 60 days old. b) Creating a provision for possible warranty claims against the company. c) Changing from a reducing balance to a straight line basis for computing depreciation on new non-current assets. d) Writing down the value of closing inventory on the basis of damage to the stock.

. The directors of Repro Ltd are anxious to improve the profit to be reported for the accounting period just ended. Which of the following would improve the profit reported? a) Increasing the rate of provision for doubtful debts from 10% to 12% of all balances over 60 days old. b) Creating a provision for possible warranty claims against the company. c) Changing from a reducing balance to a straight line basis for computing depreciation on new non-current assets. d) Writing down the value of closing inventory on the basis of damage to the stock.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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