Approximately How Long Does It Take for the Successive Increases

question 209

Multiple Choice

Approximately how long does it take for the successive increases in spending and output to be completed after an initial increase in investment spending?

• A) Two years
• B) Ten years
• C) Six years
• D) One year
• E) Five years

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Definitions:

Adjusting Journal Entry

A bookkeeping adjustment recorded at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Liability Insurance

Insurance coverage that protects against claims arising from injuries or damage to other people or property.

Prepaid Insurance

The portion of an insurance premium that has been paid in advance and is recognized as an asset until it is consumed over time.

Adjusting Entry

A financial transaction documented at the close of an accounting cycle to apportion income and costs to the suitable period.