Which of the Following Is True of Stimulus Policy Enacted

question 7

Multiple Choice

Which of the following is true of stimulus policy enacted in 2009?

• A)We can be sure that it reduced the severity of the recession because the recession was less severe than the Great Depression.
• B)We can be sure that it reduced the severity of the recession even though the recession was more severe than the Great Depression.
• C)We can not be sure that it reduced the severity of the recession,but the recession was less severe than the Great Depression.
• D)We can not be sure that it reduced the severity of the recession because the recession was more severe than the Great Depression.

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Definitions:

Accounting Estimates

Assumptions made about future financial transactions that impact the reporting of a company's financial statements, such as allowances for doubtful accounts.

Cumulative Adjustment

An accounting method used to make corrections to cumulative errors in financial statements of previous years.

Prior Period Adjustments

Corrections of errors in previously issued financial statements for periods that have already been reported.

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.