Which of the Following Would Be a Business Bad Debt

question 20

Multiple Choice

Which of the following would be a business bad debt if it were uncollectible?

• A)A taxpayer loans his father $1,000 to start a business.
• B)A taxpayer loans his son $10,000 to purchase a rental house.
• C)A dentist, using the accrual basis of accounting, records income when it is earned and extends credit to a patient for services provided.
• D)A taxpayer loans his brother $3,000 to purchase a truck for use in his brother's business.
• E)None of the above.

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Definitions:

Authority Figure

An individual who holds power or influence over others, often in a specific context like a workplace, educational setting, or family.

Door-In-The-Face Technique

A persuasive strategy that involves making a large request that is expected to be refused in order to increase the likelihood of compliance with a smaller request.

Late Shift

In work contexts, a shift that starts late in the day or evening and can extend into the night; in cognitive terms, a late change or shift in opinion or strategy.

Foot-In-The-Door Technique

The foot-in-the-door technique is a persuasion strategy where agreeing to a small request increases the likelihood of agreeing to a larger request later.