Operating Line of Credit Borrowings Usually

question 26

Multiple Choice

Operating line of credit borrowings usually

• A) are credited to a note payable account.
• B) are reported as a non-current liability.
• C) are debited to the cash account and result in a current liability.
• D) are required by all companies.

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Definitions:

Taxes

Mandatory contributions levied on individuals or corporations by a government to fund public expenditures.

Keynesian Economics

An economic theory stating that government intervention can stabilize the economy through monetary and fiscal policies, especially during recessions.

Fiscal Policy

Government policies concerning taxation and spending to influence the economy, aiming at managing economic growth and stabilizing prices and employment.

Fiscal Policy

Government policy relating to taxation, government spending, and borrowing, aimed at influencing a country's economy.