The Statement That Is Incorrect Is

question 11

Multiple Choice

The statement that is incorrect is:

• A)If a debtor fails to pay the receivable on its due date this means that the debt is bad
• B)An outstanding debt may be turned over to a collection agency
• C)Bad debts should be deducted as an expense in the same accounting period in which the credit sale is recognised
• D)Bad debts are a cost of selling on credit

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Definitions:

Economic Strike

A work stoppage by unionized workers to enforce demands regarding wages, benefits, or working conditions.

Recognition Strikes

Strikes initiated by workers to force an employer to recognize their union as the official bargaining agent for the workforce.

Strike Replacements

Workers who are hired to fill the positions of striking employees during a labor strike.

Bargaining Power

The relative capacity of parties in a negotiation to influence the terms and conditions of agreements.