The Policy of Using the Government Budget Surplus or Deficit

question 31

Multiple Choice

The policy of using the government budget surplus or deficit to control the level of spending in the economy is called:

• A) monetary policy.
• B) foreign policy.
• C) fiscal policy.
• D) general policy.

---

Definitions:

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and thus writes off as a loss.

Direct Write-off Method

An accounting practice where uncollectable debts are written off against income at the time they are deemed non-collectable.

Allowance Method

An accounting technique that estimates uncollectible accounts receivable to record bad debts expense, reflecting more accurate accounts.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable which may not be collected.