The Point at Which a Recession Ends and the Expansion

question 76

Multiple Choice

The point at which a recession ends and the expansion begins is called the:

• A) trough.
• B) downturn.
• C) peak.
• D) lag.

---

Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, often used to assess the efficiency of inventory management.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its customers after a sale has been made.

Accounts Payable Period

The average number of days it takes for a business to pay off its trade creditors.

Credit

Refers to the trust allowing one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.