Peggy Is in the Business of Factoring Accounts Receivable

question 82

Multiple Choice

Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. This year, the account was settled for $25,000. How much loss can Peggy deduct and in which year?

• A) $5,000 for the current year.
• B) $5,000 for the prior year and $5,000 for the current year.
• C) $5,000 for the prior year.
• D) $10,000 for the current year.
• E) None of the above.

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Definitions:

Crosstab Query

A database query that aggregates and displays data, especially numerical data, in a cross-tabulated format in rows and columns.

Delete Query

In databases, a command used to remove records from a table that meet specified criteria.

Backup Table

A saved copy of a table from a database to prevent data loss in the case of system failure.

Append Query

A database function that appends the outcomes of a search to the bottom of a current table.