Automatic Stabilisers Are

question 96

Multiple Choice

Automatic stabilisers are:

• A) state expenditures and revenues.
• B) similar to discretionary fiscal policy.
• C) federal expenditures and tax revenue that changes over the course of the business cycle.
• D) mechanisms allowed to accelerate the boom and amplify the recession.

Identify and explain the nature of installment notes and the computation of interest.

Understand the principles of matching revenues with expenses, especially in the context of warranty costs and fringe benefits.

Know the components of payroll taxes and the recording of payroll expenses.

Classify liabilities correctly on the balance sheet.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period. It is the beginning inventory plus purchases minus the cost of goods sold.

FIFO

"First In, First Out," a method used in inventory management and accounting where the oldest inventory items are sold or used first.

Net Income

Signifies the net income of a corporation following the subtraction of all costs and tax obligations from the overall revenue.

Inventory Turnover

A measure showing the frequency at which a company's inventory is sold and replenished within a given timeframe.