Bad Debt Expense Is Considered

question 236

Multiple Choice

Bad Debt Expense is considered

• A) an avoidable cost in doing business on a credit basis.
• B) an internal control weakness.
• C) a necessary risk of doing business on a credit basis.
• D) avoidable unless there is a recession.

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Definitions:

Doctrine Of Direct Liability

A legal principle that allows an individual or entity to be held directly responsible for harm caused by their actions or omissions.

Scope Of Employment

Activities undertaken by an employee that fall within the duties and responsibilities of their job.

Taxicab

A motor vehicle licensed to transport passengers in return for payment of a fare, usually calculated by a meter.

Tort

A wrongful act or infringement of a right leading to civil legal liability.