If It Is Known That a Debtor Cannot Pay Because

question 22

Multiple Choice

If it is known that a debtor cannot pay because of bankruptcy,the amount to be written off is shown as:

• A) A credit on the income statement, as a negative expense, and as a debit on the balance sheet
• B) A credit on the income statement and as a debit on the statement of financial position by increasing the amount shown for receivables
• C) A debit on the income statement and as a credit on the statement of financial position by reducing the amount shown for receivables
• D) None of the above statements are correct

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Definitions:

Health Problems

Issues related to one's physical or mental wellness, ranging from minor illnesses to chronic diseases.

Single-Food Diet

A dietary regimen that involves consuming only one type of food for a certain period of time, which is nutritionally unbalanced and not recommended.

Nutritionally Balanced

A diet comprising the correct proportions of all the necessary nutrients required for healthy body functioning.

Ideal Weight

A weight range deemed optimal for an individual's health, taking into account factors such as age, sex, and height.