A Small Neighbourhood Barber Shop That Is Operated by Its

question 78

Multiple Choice

A small neighbourhood barber shop that is operated by its owner would likely be organized as a

• A)public corporation.
• B)partnership.
• C)private corporation.
• D)proprietorship.

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Definitions:

Advances to Subsidiary

Funds provided by a parent company to its subsidiary as an intra-company loan or for investment purposes.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for borrowing from a bank.

Short-Term Borrowings

Loans or debt obligations that are due for repayment within one year.

Direct Write-Off Method

A method of accounting for bad debts that charges the amount of an outstanding account directly to the expense account at the time it is deemed uncollectible.