Most Spells of Unemployment Are Short, and Most Unemployment Observed

question 215

Essay

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances of temporary accounts to a permanent account.

Adjusting Entry

An accounting record posted at the closing of a financial period to assign revenues and expenses to the time they were incurred.

Closing Entry

An accounting action that transfers all temporary account balances to permanent accounts at the end of an accounting period, preparing the books for the next period.