Under Accounting Standard NZ IAS 39, the Statement in Relation

question 49

Multiple Choice

Under accounting standard NZ IAS 39, the statement in relation to changes in accounting for bad and doubtful debts that is true is:

• A) The name of bad and doubtful debts expense may be changed to 'impairment loss' on debtors.
• B) An impairment test will be applied so that debtors will not be carried in the balance sheet at more than is expected to be recovered.
• C) The name of the contra asset account 'allowance for doubtful debts' may be changed to 'allowance for impairment loss'.
• D) All of the statements are true.

---

Definitions:

Online Retail

The process of buying and selling goods and services through the internet, often through websites dedicated to commerce.

Education Tool

An education tool is any device, software, or resource used to enhance teaching and learning processes.

Relationship Marketing

Developing and maintaining long-term, cost-effective exchange relationships with partners.

Electronic Commerce

The buying and selling of goods and services, or the transmission of funds or data, over an electronic network, primarily the internet.