Try it free — the AI marks 3 answers a day.
A free account marks 30 a day.Sign up free →
Tomasz is a trader who buys and sells only on credit.
At 1 May 2025: inventory 5 280; trade receivables 15 600; trade payables 7 450; bank overdraft 1 390
Year ended 30 April 2026: revenue 148 300; purchases 104 650
At 30 April 2026: inventory 6 040; trade receivables 16 850; trade payables 10 920; bank overdraft 2 680
(all figures in $)
Tomasz wrote off some irrecoverable debts this year and now plans to create a provision for doubtful debts. Name one accounting principle he would be applying by doing so.
[1 mark]
🧭Modelled on Cambridge 0452 · May/Jun 2026 · Paper 21 · Q5(b)(i)
Guided Hint
— no answers, just a nudge
Thinking...
Worked solution
That's the full method. Now try one like it yourself.