DOUBTFUL DEBT Definition

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DOUBTFUL DEBT is a debt where circumstances have rendered its ultimate recovery uncertain. Conservatism requires that doubtful debts should be treated in the same way as bad debts. They should thus be recorded as an expense in the profit and loss account and to be credited to a provision to set off against ultimate default if it occurs.

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GOING PUBLIC refers to those activities that relate to offering a private companys shares to the general investing public including registering with the SEC.

PRIME COST is equal to the sum of DIRECT MATERIAL plus DIRECT LABOR.

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