Which of the Following Would Be Considered a Lagging Indicator

question 88

Multiple Choice

Which of the following would be considered a lagging indicator?

• A) Prime interest rate
• B) Personal income
• C) the money supply
• D) Inventories to sales ratio
• E) Payroll employment

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Definitions:

Accounting Equation

The fundamental formula in accounting that represents the relationship between assets, liabilities, and equity: Assets = Liabilities + Equity.

Voucher System

A set of procedures that uses vouchers for authorizing and recording liabilities and cash payments.

Internal Control

A process implemented by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets, and transmit management policies throughout the organization.

Cash Payments

Transactions that involve the immediate outflow of cash to settle obligations or purchase goods and services.