"If We Allow the Administration to Lower Taxes This Year

question 40

Multiple Choice

"If we allow the administration to lower taxes this year, soon they will be reducing taxes more and more every year, and before we know it the authorities will have no money to spend on police and fire departments." This is an example of a(n) _______ fallacy.

• A) ad hominem
• B) reductio ad absurdum
• C) either-or
• D) argumentum ad verecundiam

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Definitions:

Accounts Receivable

Outstanding payments from customers to a firm for goods or services that have already been delivered or utilized but remain unpaid.

Journal Entry

A record in accounting that notes every financial transaction in the books via debits and credits.

Balanced Entry

An accounting entry where the sum of debits equals the sum of credits, maintaining the balance of the accounting equation.

Owner's Capital

The amount of equity a business owner has invested in the firm plus any profits retained in the business.