Refer to the Accompanying Data, Which Is for a Speci?c

question 267

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Potential Real GDP } & \$ 200 \text { Billion } \\\hline \text { Natural Rate of Unemployment } & 6 \% \\\hline \text { Actual Rate of Unemployment } & 12 \% \\\hline\end{array}$$ Refer to the accompanying data, which is for a speci?c year in a hypothetical economy for which Okun's law is applicable. If the unemployment rate in the economy fell to 6 percent, we could
Conclude that

• A) only structural unemployment remained.
• B) the economy's production possibilities curve shifted outward.
• C) the economy had moved from a point inside its production possibilities curve to a point on or very near the curve.
• D) nominal GDP would rise, but real GDP would fall.

Recognize the process of adjusting net sales revenue to reflect cash collected from customers in the statement of cash flows.

Identify how to account for non-sufficient funds (NSF) checks in the bank reconciliation process.

Calculate bad debt expense and understand its effect on the allowance for doubtful accounts and financial statements.

Analyze how sales returns, discounts, and allowances impact financial reporting and accounting treatments.

---

Definitions:

Legislative History

The record of documents and actions associated with a bill or legislation, including debates, reports, and hearings, used to understand the intent behind the law.

Amendments

Formal changes or additions made to a document, law, or constitution.

Declaratory Judgment Statute

Legislation that allows a court to declare the rights, duties, or obligations of parties in a dispute without providing for enforcement.

Real Case

A situation or dispute involving actual events and parties, being adjudicated or capable of being adjudicated in a court of law.