Which of the Following Is Federally Licensed to Borrow Money

question 98

Multiple Choice

Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses?

• A) SCORE
• B) SBICs
• C) SBDC
• D) FDIC
• E) SEC

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Definitions:

Direct Write-off Method

An accounting practice where uncollectible accounts receivables are written off directly against income at the time they are deemed noncollectable.

Allowance Method

An accounting technique used to account for bad debts, which estimates and sets aside a portion of accounts receivable deemed unlikely to be collected.

Uncollectible Receivables

Debts owed to a company that are considered to be uncollectable, indicating that the company does not expect to receive payment due to the debtor's inability to pay.

Percentage of Sales

A financial ratio that compares a particular expense or cost to the total sales revenue, often used to analyze cost behavior or performance.