Which of the Following Provides the Best Explanation for Why

question 129

Multiple Choice

Which of the following provides the best explanation for why GDP may increase over long periods of time?

• A)increase in capital stock
• B)increase in emigration
• C)increase in mortality rates
• D)increase in interest rates
• E)increase in unemployment

---

Definitions:

Bad Debt Expense

An anticipated expense recorded in the accounts to allow for customers' debts that have been deemed unrecoverable.

Journal Entries

Records of financial transactions in the accounting system, showing accounts affected, amounts, and date.

Allowance Account

An account used in accounting to reflect anticipated losses from accounts receivable that might not be collected.

Direct Write-Off Method

A method of accounting for bad debts whereby companies directly remove (write off) uncollectible amounts from accounts receivable when they are deemed uncollectible.