The Four Parts of the Business Cycle Occur in the Following

question 28

Multiple Choice

The four parts of the business cycle occur in the following order

• A) recession, trough, peak, expansion.
• B) expansion, trough, peak, recession.
• C) recession, trough, expansion, peak.
• D) expansion, trough, recession, peak.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, often used for managing liquidity.

Capital Budget

An estimate of the cost of an organization's major investments or projects, analyzing the potential returns and expenditures.

Accruals

The accounting process of recognizing revenues and expenses when they are incurred, regardless of when cash transactions occur.

Economic Forces

Factors such as inflation, interest rates, and unemployment that influence the performance of the economy and impact financial markets.