In the Expansion Phase of the Business Cycle

question 82

Multiple Choice

In the expansion phase of the business cycle

• A)output is rising.
• B)unemployment is falling.
• C)consumer and business confidence is high.
• D)investment is rising.
• E)all of the above are true.

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Definitions:

Revenues

The income generated from normal business operations, often from the sale of goods and services to customers.

Expenses

Costs incurred by a business in the process of earning revenues.

Revenue Recognition Principle

The concept that supports recording revenues when services have been performed or products delivered to customers.

Cash

Money in the form of coins or banknotes held by an individual or organization, readily available for transactions.