A Condition Characterized by Continuing Rise in Prices Over a Period

question 12

Multiple Choice

A condition characterized by continuing rise in prices over a period of time refers to:

• A)inflation.
• B)depression.
• C)a recession.
• D)economic contraction.
• E)deflation.

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Definitions:

Unrealized Profits

Profits that have been generated on paper through investments and other financial instruments but have not yet been realized through actual transactions.

Journal Entry

A recorded transaction in the financial accounting system, documenting the debits and credits necessary to maintain the balance sheet's integrity.

Inventory

Items that a company holds for the purpose of selling in the normal course of business, or materials used in the production of goods to be sold.

Dividends

Funds disbursed by a company to its stockholders, typically from earnings.