Which of the Following Is a TRUE Statement

question 350

Multiple Choice

Which of the following is a TRUE statement?

• A) All recessions are due to external shocks.
• B) Ultimately, no recession has been due to an external shock.
• C) There have been recessions that cannot be explained by external shocks.
• D) All recessions and all expansions are due to external shocks.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to be uncollectible.

Merchandise Return

The process of returning purchased goods to the seller, typically due to defects, dissatisfaction, or other reasons.

Full Payment

The act of paying the entire amount due on an obligation, such as an invoice or loan, without any outstanding balance.

Promissory Note

A financial instrument involving a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.