In Its Annual Report the FCX Company Reported the Value

question 34

Multiple Choice

In its annual report the FCX Company reported the value of its ending inventory,rather than the number of units on hand.This best describes an application of the:

• A)business entity concept
• B)going concern concept
• C)monetary unit concept
• D)periodicity concept

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Definitions:

Cost-Push Inflation

Rising costs of doing business push up prices.

Open-Market Operations

Activities undertaken by central banks to buy or sell government securities in the open market to influence the money supply and interest rates.

Aggregate Demand

The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.

Business Cycle Trough

The phase in the business cycle where economic activity is at its lowest point, preceding a recovery or expansion period.