If the Price Level Is Falling,all of the Following Are

question 102

Multiple Choice

If the price level is falling,all of the following are true except

• A)Lenders are better off.
• B)Businesses are reluctant to borrow money.
• C)Purchasing power increases.
• D)Borrowers are not affecteD.Borrowers are affected in that the debts they must repay are paid back with dollars worth more than what they borrowed.

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Definitions:

Actual Results

The real outcomes achieved by an organization, which can be measured and compared against its goals or forecasts.

Planned Activities

Predefined actions or strategies set by an organization in pursuit of its objectives.

Accounting Period

A specific and standard duration of time (such as a month, quarter, or year) during which accounting records are kept and financial statements are prepared.

Immaterial Variances

Small or insignificant differences between budgeted and actual figures that are not considered important enough to analyze in detail.