The Index of Leading Indicators Is a Factor That

question 127

Multiple Choice

The index of leading indicators is a factor that

• A)We can observe today that is logically linked to future economic performance.
• B)Generally moves in a positive direction before recessions.
• C)Is published weekly and provides forecasts of the economy three to six months in advance.
• D)Is a mathematical summary of the economy's past performance.

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Definitions:

Closing Entries

At the end of an accounting cycle, transactions are recorded to shift balances from provisional accounts to lasting accounts.

Post-closing Trial Balance

A summary of all account balances after closing entries are made, used to check the balance of debits and credits.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used in the preparation of financial statements.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.