Identify an Example of a Stock Variable

question 27

Multiple Choice

Identify an example of a stock variable.

• A) the growth in investment in an economy
• B) the change in the price level in an economy over the years
• C) the number of unemployed people in an economy in a particular year
• D) the increase in the money supply in an economy
• E) the fall in consumer spending during two consecutive years

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Definitions:

Fixed Asset Accounts

Accounts used in accounting to track the purchase, depreciation, and disposal of fixed assets, which are long-term tangible assets.

Current Ratio

A financial ratio that measures a company's ability to cover its short-term liabilities with its short-term assets, calculated as current assets divided by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets available to fund its day-to-day operations.

Chart of Accounts

A structured list of all the financial and nominal accounts in a company, detailing every type of transaction a business might conduct.