The Factor Accounting for the Largest Increase in the Productivity

question 119

Multiple Choice

The factor accounting for the largest increase in the productivity of labor in the United States has been

• A) the education and training of workers.
• B) improved resource allocation.
• C) the quantity of capital.
• D) technological advance.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account that represents the estimated portion of accounts receivable that may not be collectible.

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable and adjust the amount of accounts receivable reported on the balance sheet.

Accounts Receivable

Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.

Allowance for Doubtful Accounts

A contra-asset account used to estimate and offset the amount of receivables that may not be collected.