The Situation When the Price of Most Goods and Services

question 138

Multiple Choice

The situation when the price of most goods and services are falling over time is called:

• A)inflation.
• B)disinflation.
• C)a boom.
• D)deflation.

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Definitions:

Closing

The process of finalizing accounts at the end of an accounting period, leading to the preparation of financial statements.

Real Accounts

Accounts that represent assets, liabilities, and equity of a business and carry their balances permanently across accounting periods.

Accounting Period

The time span during which financial activities are recorded and reported, commonly a fiscal year or quarter.

Expense Accounts

Accounting categories used to track money spent or costs incurred in a company’s operations.