The Term Recession Refers to

question 196

Multiple Choice

The term recession refers to

• A)a period of decline in real GDP for two business quarters.
• B)a fall in the general level of real wages.
• C)a fall in the CPI.
• D)a fall in the rate of increase of real per capita GDP.
• E)a prolonged period of falling prices.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

FIFO

An accounting method where the first items placed in inventory are the first sold or used.

Inventories

Quantities of goods in stock that are held by a business for the purpose of sale or production.

Retrospective Adjustment

An accounting practice where prior period financial statements are adjusted to reflect changes in accounting policies or correction of errors as if the new policy had always been applied.