Tax Cuts and Tax Surcharges Are Examples of

question 43

Multiple Choice

Tax cuts and tax surcharges are examples of

• A) public works programs.
• B) discretionary fiscal policy.
• C) welfare transfers.
• D) monetary policy.
• E) automatic stabilizers.

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Definitions:

Fixed Asset Impairments

A reduction in the recoverable value of a fixed asset below its carrying value, recognized as a loss in financial accounting.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or abandoned and are reported separately in financial statements.

Unusual Item

A significant financial transaction or event that is rare and not expected to recur frequently, reported separately in financial statements to not distort the operational performance.

Fixed Assets

Durable physical assets employed in the running of a company, which are not anticipated to be expended or turned into cash within one fiscal year.