Because of an Increase in the Work-Force Participation Rate for Women

question 49

Multiple Choice

Because of an increase in the work-force participation rate for women, the availability of uncompensated child care (free care by aunts, sisters, and grandmothers) has become less available to poor women so as a consequence the fact that child care must now be paid for suggests that the

• A)poverty line should be revised upward.
• B)poverty line should be revised downward.
• C)poverty gap is overstated.
• D)poverty rate is overstated.

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Definitions:

Accounts Receivable

Funds that a company's clients have not yet paid for products or services that have already been provided to them.

Allowance Method

An accounting technique that estimates and sets aside a portion of a company's receivables as uncollectable, acknowledging potential credit losses.

Uncollectible Account Receivable

An uncollectible account receivable is a debt owed to a company that it is unable to collect, typically leading to its classification as a bad debt expense.

Write Off

The accounting action of declaring that an asset is no longer collectible and recording its worth as zero, resulting in it being expensed.