A Rise in the General Level of Prices Over Time

question 22

Multiple Choice

A rise in the general level of prices over time is called ________.

• A) deflation
• B) inflation
• C) disinflation
• D) deflection

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Definitions:

Explanation Column

A column in accounting ledgers or financial reports where details are provided to explain the nature or reason for a transaction.

Computerized Accounting System

A software-based method that provides automatic bookkeeping and accounting for business transactions, improving accuracy and efficiency over manual methods.

Chart of Accounts

A listing of all the accounts in a general ledger that a business uses to code each of its transactions based on the nature of the expense, asset, liability, etc.

General Ledger

A comprehensive accounting record of all transactions of a business, summarizing all accounts and transactions in one place.