Taj Operates a Sole Proprietorship, Maintaining the Business Records Under

question 1310

Multiple Choice

Taj operates a sole proprietorship, maintaining the business records under the cash- basis method of accounting. Taj performs services for a client and sends the client a bill for $12,000. Six months later, before payment is received by Taj, the client files bankruptcy, with no assets available for unsecured creditors such as Taj. Taj will deduct

• A) $0.
• B) $3,000 long- term capital loss.
• C) $3,000 short- term capital loss.
• D) $12,000 ordinary loss.

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Definitions:

Dependent Variable

In an experimental setting, it is the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Internal Validity

The degree to which an experiment or study accurately measures or tests what it intends to, without the influence of external factors.

Operationalizing

The process of defining a research variable in practical, measurable terms, allowing it to be quantitatively or qualitatively analyzed.

Generalizability

The extent to which research findings are applicable to other settings or groups beyond the studied sample.