GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bad debts
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Overdrawn accounts
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Out of order accounts
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Non-performing Assets
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Detailed explanation-1: -Net receivables are the money owed to a company by its customers minus the money owed that will likely never be paid, often expressed as a percentage. Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible.
Detailed explanation-2: -In this sense, bad debt is in contrast to good debt, which an individual or company takes out to help generate income or increase their overall net worth.
Detailed explanation-3: -What Is a Bad Debt Reserve? A bad debt reserve is the dollar amount of receivables that a company or financial institution does not expect to actually collect. This includes business payments due and loan repayments. A bad reserve is also known as an allowance for doubtful accounts (ADA).