During the Mid and Last Part of the 1990's Both

question 79

Multiple Choice

During the mid and last part of the 1990's both inflation and unemployment were low.In general this could have been the result of

• A)adverse supply shocks that shifted the short-run Phillips curve left.
• B)adverse supply shocks that shifted the short-run Phillips curve right.
• C)favorable supply shocks that shifted the short-run Phillips curve left.
• D)favorable supply shocks that shifted the short-run Phillips curve right.

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Definitions:

Allowance Method

An accounting technique used to account for bad debts, estimating and setting aside a portion of accounts receivable that may not be collectible.

Percent of Sales Method

A financial forecasting model that estimates future elements of a financial statement as a percentage of sales.

Percent of Receivables Method

This is an accounting method used to estimate the amount of a company's receivables that will not be collected, based on a percentage of total receivables.

Bad Debt Expense

Bad debt expense is an estimated expense that a company records to cover receivables that are unlikely to be collected, acknowledging these credits as losses.