Which of the Following Are Not Counted When We Compare

question 8

Multiple Choice

Which of the following are not counted when we compare a family's income to the poverty line?

• A) In-kind transfers such as food stamps, Medicaid, and public housing.
• B) Cash welfare payments such as from social security.
• C) Cash payments when a worker becomes unemployed.
• D) Both a. and b. above are correct.

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Average Total Assets

This metric calculates the average value of all assets owned by a company over a specific period, usually used in financial analysis to gauge productivity.

Aging Method

An accounting technique used to estimate the amount of bad debts (uncollectible accounts) by categorizing accounts receivable according to their age (how long they have been outstanding).

Allowance Account

A contra asset account associated with accounts receivable that estimates the amount of receivables that may not be collected.