Which of the Following Would Be a Business Bad Debt

question 60

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 these

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Definitions:

Sophistication Of Technology

The level of advanced and complex technological development or application.

Consumer Tastes

Preferences and desires of consumers regarding the choice of products or services, influencing market demand.

Traditional Management Rights

The rights inherently held by employers to make operational decisions, including hiring, work assignments, and terminations, without needing union approval or negotiation.

Canadian Joint Industrial Councils

Advisory bodies in Canada that bring together representatives from labor and management to discuss issues affecting their industries.