In Order to Be Classified as a Recession,a Contraction of General

question 126

Multiple Choice

In order to be classified as a recession,a contraction of general economic activity must last at least

• A)one year.
• B)six months.
• C)one period.
• D)one quarter.
• E)None of the above because recessions do not have a minimum length.

---

Definitions:

Transactions

Business activities or events that involve the exchange of goods, services, money, or a promise of any of these.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Amount entered on the right side of an account.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.