If a Business Debt Previously Deducted as Partially Worthless Becomes

question 106

True/False

If a business debt previously deducted as partially worthless becomes totally worthless this year, only the amount not previously deducted can be deducted this year.

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Definitions:

Going Concern Assumption

An accounting principle assuming that a company will continue in operation for the foreseeable future.

Monetary Unit Assumption

An accounting principle that assumes transactions can be recorded and expressed in a stable currency.

Economic Entity Assumption

An accounting principle that treats a company as a separate entity from its owners or other businesses, keeping its financial transactions distinct.

Revenue Recognition Principle

An accounting principle that dictates the specific conditions under which revenue is recognized or recorded.