Which of the Following Is Not an Example of an Automatic

question 64

Multiple Choice

Which of the following is not an example of an automatic stabiliser?

• A) Welfare payments.
• B) Unemployment benefits.
• C) Transfer payments.
• D) Highway construction.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accuracies in preparation for financial reporting.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones.

End-Of-Period Spreadsheet

A document used in accounting to compile all balance sheet and income statement accounts at the end of a reporting period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.