Which of the Following Would Be a Business Bad Debt

question 20

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 the above.

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Definitions:

Mario Savio

An American activist and a key member of the Berkeley Free Speech Movement, known for his passionate speeches calling for academic freedom and reform of university policies in the 1960s.

American Society

The social structure, cultural practices, and historical development of the United States, influenced by diverse ethnic backgrounds and ideologies.

Crises

Situations of severe difficulty or danger, often in politics, society, or the economy, that requires immediate action and resolution.

Short-Term Consequences

Effects or outcomes of an action, decision, or event that appear or are felt immediately or within a relatively brief period after.