In Relation to the Expense Associated with the Creation of an Allowance

question 3

Multiple Choice

In relation to the expense associated with the creation of an allowance for doubtful debts,the UK Taxation Authorities:

• A)never allows a deduction for taxation purposes for that amount.
• B)allows a deduction for taxation purposes for that amount when it is recognised as an expense.
• C)allows a deduction for taxation purposes immediately.
• D)allows a deduction for taxation purposes only when there is a bad debt written off against a credit customer's account.

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Definitions:

Correct Response

The accurate or appropriate reply or action in answer to a question, statement, or situation.

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, which encourages steady response rates.

Responding

The act of giving a reaction or answer to a stimulus or question.

Reinforced

Strengthened or made more effective, often through repeated action or the application of an external stimulus.