Which of the Following Did Not Contribute to the Severity

question 48

Multiple Choice

Which of the following did not contribute to the severity of the Great Depression?

• A) a sharp reduction in the money supply during the early 1930s
• B) a large tax increase (to balance the budget) in the early 1930s
• C) substantial increases in the tariff rates on imported goods
• D) a reduction in government expenditures and a substantial cut in personal income tax rates during 1932 and again in 1936

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Definitions:

Inventories

Goods and materials that a business holds for the ultimate goal of resale or processing.

Underapplied Manufacturing Overhead

Underapplied manufacturing overhead occurs when the allocated manufacturing overhead costs are less than the actual costs incurred, indicating a shortfall that needs to be addressed in financial accounts.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Adjusted Cost

The net cost of an asset after adjustments for factors such as depreciation, improvements, or disposals, used in financial and tax reporting.