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Both the Allowance Method and the Direct Charge-Off Method Are

question 68

True/False

Both the allowance method and the direct charge-off method are acceptable for tax purposes.


Definitions:

Founder Effect

A genetic phenomenon that occurs when a new population is established by a very small number of individuals, leading to significant genetic drift.

Allele Frequencies

The relative frequencies of all the different alleles of a gene in a given population.

Genetic Drift

The process in which allele frequencies within a population change randomly with no influence from selective pressures, often affecting smaller populations more significantly.

Genetic Variation

The diversity in gene frequencies within a population, which is the raw material for evolution.

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