Which of the Following Is an Example of Duress

question 54

Multiple Choice

Which of the following is an example of duress?

• A) Joe refuses to sell Harry his car unless Harry offers him more money.
• B) Joe, knowing of Harry's financial situation, refuses to sell him his car.
• C) Joe counteroffers Harry's original offer.
• D) Joe wants to purchase Smith's car from him, and Smith sells it to someone else.
• E) Joe threatens to smash Harry's car if Harry won't sell it to him.

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Definitions:

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Direct Write-off Method

A method of accounting for bad debts that charges the amount directly to expense when it is determined to be uncollectible.