Suppose That Consumers Decide to Buy More Computers and Fewer

question 185

Multiple Choice

Suppose that consumers decide to buy more computers and fewer typewriters. As a result, computer companies expand production while typewriter companies lay off workers. What is this an example of?

• A)structural unemployment created by efficiency wages
• B)cyclical unemployment created by a recession
• C)frictional unemployment created by a sectoral shift in demand
• D)frictional unemployment created by a sectoral shift in supply

Analyze the financial impact of bad debt accounting choices on the financial statements.

Comprehend the importance of the expense recognition principle in accounting for bad debts.

Understand how to use aged receivables to estimate the allowance for doubtful accounts.

Learn how to calculate and interpret accounts receivable turnover ratios.