When Bob Is Laid Off from His Job at the Auto

question 20

Multiple Choice

When Bob is laid off from his job at the auto plant,which of the following categories would he fall under?

• A)a job loser
• B)frictionally unemployed
• C)a job leaver
• D)underemployed

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Definitions:

Adjusting Entries

At the close of an accounting period, entries in accounting records to apportion income and outlays to the actual time they happened.

Prepaid Rent

An expense that represents payment made in advance for the use of property or space, which is recorded as an asset until it is consumed or the rental period elapses.

Adjusting Entries

Entries recorded at the conclusion of an accounting cycle to distribute revenues and expenses to the timeframe in which they were truly incurred.

Deferral

An accounting practice in which the recognition of an expense or revenue is delayed to a future accounting period.