Which of the Following Events Is Not a Past Event

question 1

Multiple Choice

Which of the following events is not a past event generating a liability?

• A) Purchase of raw materials on credit
• B) Receipt of a bank loan
• C) Acquisition of goods paid on delivery
• D) Receipt of prepayment for services

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Definitions:

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.

Fed's Policy

The set of monetary policy guidelines and actions taken by the Federal Reserve, the central banking system of the United States, to control the money supply and achieve macroeconomic goals.

High Inflation

A situation characterized by an excessive and accelerating increase in the prices of goods and services across the economy.

Expectations

Beliefs or forecasts about future events that affect economic decisions, such as consumption, savings, and investment.