Which of the Following Is True

question 211

Multiple Choice

Which of the following is true?

• A)A "depression" is a recession that is mild and relatively brief.
• B)The expansions and contractions of real world business cycles last varying lengths of time.
• C)The timing of business fluctuations is regular and,therefore,easily predictable.
• D)During the recessionary phase of the business cycle,the rate of unemployment is generally quite low.

---

Definitions:

Present Obligation

An obligation that arises from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled in the future through the transfer of assets or services.

Provisions

Liabilities of uncertain timing or amount, set aside in anticipation of future obligations or costs.