Using the Seasonal Business Cycle as Your Guide,during Which Quarter

question 30

Multiple Choice

Using the seasonal business cycle as your guide,during which quarter would you be most likely to expect a drop in your corporation's sales?

• A)the first quarter of the year (January-March)
• B)the second quarter of the year (April-June)
• C)the third quarter of the year (July-September)
• D)the fourth quarter of the year (October-December)

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, simplifying accounting computations.

Salvage Value

The projected sale proceeds of an asset at the conclusion of its period of utility.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recoup its original cost.

Accounting Rate of Return

The accounting rate of return (ARR) is an accounting metric that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.