During Recessions Which Type of Spending Falls

question 12

Multiple Choice

During recessions which type of spending falls?

• A)consumption and investment
• B)investment but not consumption
• C)consumption but not investment
• D)neither consumption nor investment

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Definitions:

Subsidiary Ledgers

Detailed ledgers that contain information supporting accounts listed in the general ledger, such as details on accounts receivable, accounts payable, etc.

Subsidiary Ledgers

Detailed records that contain information about specific accounts, which together support and reconcile with summary amounts in the general ledger.

Daily Postings

The routine process of recording transactions in the books of accounts or ledgers on a daily basis to ensure financial records are up-to-date.

Control Account

An account in the general ledger used to simplify the recording of transactions and track the total amounts for financial statement purposes, often summarizing the details that are held in a subsidiary ledger.