During the Period That Many Call the Great Recession

question 114

Multiple Choice

During the period that many call the Great Recession:

• A) GDP fell.
• B) unemployment rose.
• C) there was a sharp decrease in consumer spending.
• D) All of these are true.

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Definitions:

Going Concern Assumption

The assumption that the entity will continue to operate for the foreseeable future.

Historical Costs

The original monetary value at which an asset was bought or a liability was incurred.

Liquidation

The process of closing a business, selling its assets, and using the proceeds to pay creditors, with any leftovers distributed to shareholders.

Measurement Base

The method or approach used in determining the value of assets and liabilities for accounting and reporting purposes.