Which Phase of the Business Cycle Follows a Recession

question 22

Multiple Choice

Which phase of the business cycle follows a recession?

• A) recovery
• B) recession
• C) peak
• D) trough

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Definitions:

Accounts Payable

Liabilities representing money owed by a company to suppliers or creditors for goods and services received.

Merchandise Inventory

Products that a company buys for resale to customers, representing one of the key assets that contribute to the company's revenue.

Discount

A reduction from the usual cost of something or the interest that is deducted from the face value of a promissory note when it is issued.

Perpetual Inventory System

An inventory management method where updates are made continuously as inventory items are bought and sold.