As Long as Prices Continue to Rise Faster Than Costs

question 37

True/False

As long as prices continue to rise faster than costs in an inflationary environment, reported profits will generally continue to rise.

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Definitions:

Probable Future Sacrifices

The expected relinquishment of assets as a result of obligations.

Liabilities

Economic obligations or debts owed by a business to others, typically arising in the course of its operations.

Economic Benefits

Benefits that can be quantified in monetary terms and usually include profits, revenues, and savings.