The Purpose of a Chain-Weighted Price Index Is to Account

question 55

Multiple Choice

The purpose of a chain-weighted price index is to account for:

• A) the costs of purchasing wholesale products like chains and industrial goods.
• B) the changes in the quantities of goods and services purchased over time.
• C) linkages in price changes among industrialized countries.
• D) none of the above

---

Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of receivables that may not be collectible.

Contra Asset

An account on a company's balance sheet that reduces the total amount of an asset, such as accumulated depreciation.