Martha visits a departmental store and learns that a box of exotic candles would cost her ten percent more than what she had paid for it six months ago. In this scenario, Martha has to pay more as a result of _____

a. inflation

b. recession

c. stagnation
d. stagflation


ANSWER: a

Inflation is a measure of the decrease in the value of money, generally expressed as the percentage reduction in value since the previous year, which is the rate of inflation.

Business

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Total operating expenses on Legg Company's income statement for last year totaled $260,000. During the year the accrued liabilities decreased by $12,000, and prepaid expenses increased by $18,000. Depreciation expense for the year were $25,000. Based on this information, operating expenses adjusted to cash basis under the direct method on the statement of cash flows would be:

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Indicate whether the statement is true or false.

Business