During November 2013,Asler Inc

question 3

Multiple Choice

During November 2013,Asler Inc.performs consulting services.The client does not pay Asler until January,2014.

• A)Using the accrual basis of accounting,the revenue is reported in January 2014.
• B)Using the cash basis of accounting,the revenue is reported in November 2013.
• C)Using the accrual basis of accounting,the revenue is reported in November 2013.
• D)Using the accrual basis of accounting,the revenue is reported when Asler's expenses are paid.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the economy's inflation rate.

Inflation Rate

The annual percentage increase in the general price level of goods and services, reflecting the rate at which the purchasing power of currency is eroded.

Market Basket

A fixed list of items, used to track the progress of inflation in an economy or to compare costs of living.

CPI

Refers to the Consumer Price Index, a metric that calculates the weighted average price of a selection of consumer items and services including food, medical care, and transportation.