The Time It Takes for Policy Makers to Obtain Data

question 23

Multiple Choice

The time it takes for policy makers to obtain data indicating what is happening in the economy is called

• A)the data lag.
• B)the recognition lag.
• C)the legislative lag.
• D)the implementation lag.
• E)the effectiveness lag.

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Definitions:

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Earned Revenues

Income a company has generated for goods delivered or services provided, recognized when earned, not necessarily when received.

Incurred Expenses

Expenses that have been recognized in the accounting period when they are incurred, regardless of when the payment is made.

Profit Margin

A financial metric that shows the percentage of a company's revenue that remains as profit after accounting for costs and expenses.