Economic Variables That Generally Turn Down Before a Recession Begins

question 59

Multiple Choice

Economic variables that generally turn down before a recession begins and turn back up before the recovery starts are called:

• A)leading indicators.
• B)coincident indicators.
• C)lagging indicators.
• D)none of the above.

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Definitions:

Intra-Entity Transactions

Transactions occurring within the same legal entity, often accounted for in transfer pricing.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by reporting these profits as income.

Consolidating Entries

Journal entries made in the process of combining the financial statements of multiple subsidiaries with those of a parent company.