Some Friends Are Trying to Make Wine in Their Basement

question 38

Multiple Choice

Some friends are trying to make wine in their basement. They've added yeast to a sweet grape juice mixture and have allowed the yeast to grow. After several days, they find that sugar levels in the grape juice have dropped, but there's no alcohol in the mixture. The most likely explanation is that ________.

• A)the mixture needs more sugar; yeast need a lot of energy before they can begin to produce alcohol
• B)the mixture needs less oxygen; yeast only produce alcohol in the absence of oxygen
• C)the mixture needs more oxygen; yeast need oxygen to break down sugar to produce alcohol
• D)the mixture needs less sugar; high sugar concentrations stimulate cellular respiration, and alcohol is not a by-product of cellular respiration

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Definitions:

Bad Debts Expense

Bad debts expense represents the portion of receivables that a company estimates it will not be able to collect.

Allowance for Doubtful Accounts

An accounting provision made by companies to account for potential future bad debts, reflecting credit sales that might not be collected.

Write Off

The accounting action of declaring that an asset is no longer useful and recording its depreciation in the financial statements.

Expense Recognition Principle

An accounting principle that matches expenses with the revenues they helped to generate, recognizing expenses in the same period as the revenues.