Which of the Following Is Considered a Nonbusiness Bad Debt

question 24

Multiple Choice

Which of the following is considered a nonbusiness bad debt?

• A) Tom, a CPA, made personal loans to several friends who were not his clients. ftree of the loans became totally worthless.
• B) Mary obtained a court-order for her former husband, Bill, to pay child support. Bill did not pay the child support.
• C) Kirby guaranteed a loan as a gesture of friendship for Sue. Sue defaulted and Kirby paid off the loan.
• D) None of the above.

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Definitions:

High-context Culture

A culture in which communication is largely implicit, meaning is derived from context, non-verbal cues, and between-the-lines interpretation rather than explicit words.

Gestures

Movements of the body, especially the hands and arms, that express ideas or feelings, or communicate specific messages without words.

Polychronic Culture

A cultural trait which values multitasking and the engagement in multiple activities simultaneously.

Cultural Tightness-looseness

A concept describing the extent to which social norms are rigidly adhered to and the tolerance level for deviance from these norms within a culture or society.