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Business Data Management · Quiz 2 · 16 Aug 2026 · May 2026 term

Question 7: If a customer buys a burger from a burger shop and promis…

Question 7

+2 marksOne correct option

If a customer buys a burger from a burger shop and promises to pay the shop owner in a week, but the customer goes bankrupt and cannot pay the shop owner, how is this recorded in the accounts?

  1. A

    As a Prepaid Expense

  2. B

    As a 'Write-off' and treated as an expense

  3. C

    As a Capital Reserve

  4. D

    As a Long-term Liability

Show answer

Correct answer

  • B

    As a 'Write-off' and treated as an expense

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Question 7 of 24 in the IIT Madras BS Business Data Management (BDM) Quiz 2 paper sat on 16 Aug 2026, in the May 2026 term (Business Data Management 14 Aug 26). It carries 2 marks.

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