Which of the Following Statements Concerning the History of U

question 18

Multiple Choice

Which of the following statements concerning the history of U.S.inflation is not correct?

• A)Prices rose at an average annual rate of about 3.6 percent over the last 80 years.
• B)There was about a 17-fold increase in the price level over the last 80 years.
• C)Inflation in the 1970s was below the average over the last 80 years.
• D)The United States has experienced periods of deflation.

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Definitions:

Operating Cycle

The time it takes for a company to make an initial outlay of cash to produce goods or services and then receive cash back from selling these goods or services.

Accounting Cycle

The sequence of steps followed in the accounting process to record and summarize financial transactions throughout a period and prepare financial statements.

Journalizing Transactions

The process of recording business transactions in the journal as part of the accounting process.

Correcting Entries

Journal entries made to correct errors found in the financial statements.