After a Business Cycle Peak a Recession Follows

question 89

Multiple Choice

After a business cycle peak a recession follows

• A)all of the time.
• B)most of the time.
• C)some of the time.
• D)none of the time.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which are recorded on the right side of the balance sheet.

Equity

Equity represents an owner's share in the assets of a company, after all liabilities have been subtracted.

Accounts Receivable

The balance of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Credit

An entry recording an increase in assets or decrease in liabilities and equity on the company’s balance sheet, or the provision of goods or services in exchange for a promise of payment in the future.