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:

Enduring Mental Representation

Cognitive constructs that allow individuals to hold information in their mind over time, forming the basis of learning and cognition.

Sternberg's Triangular Model

A theory of love proposed by Robert Sternberg, which suggests that love has three components: intimacy, passion, and commitment.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and secondary sexual characteristics.