Discretionary Fiscal Policy Differs from Nondiscretionary Fiscal Policy in That

question 47

Multiple Choice

Discretionary Fiscal Policy differs from Nondiscretionary Fiscal Policy in that

• A)the former deals with interest rates and the latter deals with tax policy.
• B)the former is built into the system whereas the latter requires timely decisions.
• C)the former requires timely decisions whereas the latter is built into the system.
• D)the former deals with tax policy and the latter deals with interest rates.

---

Definitions:

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Salaries Expense

The total amount paid to employees for services rendered during a specified period, recorded as an expense on the income statement.

Depreciation

The method of distributing the expense of a physical asset through its lifespan, accounting for depreciation, outdatedness, or aging.

Allocation Process

The method of distributing costs among different departments, products, or services for accounting purposes.