After Jack's Loan Application for the New Car Was Rejected

question 341

Multiple Choice

After Jack's loan application for the new car was rejected, he told a friend that he was glad he had not gotten the loan because his old car was still very reliable and he really didn't want to make monthly car payments. Which ego defense mechanism best explains Jack's behavior?

• A) repression
• B) undoing
• C) rationalization
• D) reaction formation

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Definitions:

Allowance for Doubtful Accounts

A contra asset account that reduces the total receivables on the balance sheet by the amount estimated to be uncollectible.

Aging Accounts Receivable

A method of categorizing accounts receivable based on how long an invoice has been outstanding, used to identify potential bad debts.

Period of a Note

The duration of time from when a promissory note is issued until it is due for repayment.

Contract Date

The specific date on which a contract is signed or becomes enforceable.