In the Business Cycle, a Trough Marks the End of A(n)_____

question 8

Multiple Choice

In the business cycle, a trough marks the end of a(n) _____ and the beginning of a new _____.

• A)contraction;expansion
• B)peak;expansion
• C)expansion;contraction
• D)peak;contraction
• E)expansion;peak

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Definitions:

Revenue

The total amount of money received by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Expense Accounts

Accounts used to record transactions relating to expenses incurred by a business, such as costs for materials, utilities, and salaries.

Common Stock

Equity securities representing ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to check the mathematical accuracy of the bookkeeping system.