Refer to the Information Provided in Table 22

question 129

Multiple Choice

Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
-Refer to Table 22.5. Suppose 2015 is the base year. The price index in 2014 is

• A) 94.2.
• B) 97.4.
• C) 106.1.
• D) 123.0.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered on credit.

Credit Sales

Sales made by a business where payment is delayed as per agreement, acknowledging the goods are sold on credit.

Selling Price

The amount of money for which a product or service is sold, determined by factors such as cost, market demand, and competition.

Raw Materials Inventory

The total cost of all components and materials stored and awaiting use in the production process, forming a significant part of a manufacturing company's current assets.