CBSE · Class 11 · Accountancy · Financial Statements - IIWhich of the following adjustments decreases the net profit?
Step-by-Step Solution
Bad debts, depreciation, and outstanding expenses all reduce net profit because they are expenses or losses. Therefore, all the options listed are correct.
Detailed Options Breakdown
Option : Provision for bad debts
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 1: Depreciation on assets
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 2: Outstanding expenses
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 3: All of the above (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - II. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - II Revision Notes.