The Best Way to Keep Inflation Under Control Is to ________

question 53

Multiple Choice

The best way to keep inflation under control is to ________.

• A) abandon discretionary policy
• B) abandon expansionary policy
• C) invoke activist solutions
• D) A and B only

---

Definitions:

Allowance Method

The allowance method is an accounting technique used to estimate and account for potential credit losses on accounts receivable, recognizing them as an expense before they occur.

Direct Write-off Method

An accounting technique for recognizing bad debts where specific uncollectible accounts are directly written off against income when deemed unrecoverable.

Aging of Receivables Method

An accounting technique used to estimate the amount of and provision for doubtful accounts by categorizing receivables according to the length of time they have been outstanding.

Direct Write-off Method

An accounting method in which uncollectible accounts receivable are directly written off against income at the time they are deemed irrecoverable.