Just After a Cyclical Trough,given the Excess Capacity in the Economy,there

question 22

Multiple Choice

Just after a cyclical trough,given the excess capacity in the economy,there should be an unusually ________ rate of closing the gap between desired and actual capital stocks,making net investment respond relatively ________ to rising sales.

• A)high,strongly
• B)high,weakly
• C)low,strongly
• D)low,weakly

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Definitions:

Taxes Payable

The amount of tax a company or individual owes to the tax authorities but has not yet paid by the end of the accounting period.

Taxes Expense

The total amount of taxes owed by an individual or corporation to the government within a fiscal period.

Adjusted Entry

An accounting record made to amend the effects of previously recorded transactions to accurately reflect financial realities.

Taxes Expense

The total amount of taxes owed by a business to federal, state, and/or local governments as determined by applicable tax rates on business income.