The Table Below Shows Hypothetical Data for Volumes of E-Books

question 92

Multiple Choice

The table below shows hypothetical data for volumes of e-books and hardcover books sold over a 3-year period in a particular city. TABLE 2-3 Refer to Table 2-3.Suppose we choose Year 1 as the base year and construct a series of index numbers with which to analyze the sales data.The index numbers for volumes of e-books sold (starting with Year 1) is

• A)100; 44.2; 21.7.
• B)100; 226.1; 460.9.
• C)23 000; 52 000; 106 000.
• D)100; 126.1; 360.1.
• E)1; 0.442; 0.217.

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and the price for which it sells when the bond's market value is lower than its face value.

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a set period, until the debt is fully repaid.

Journal Entry

A record in accounting that shows a business transaction and its effect on the accounts, typically involving a debit and credit.

Interest Expense

The cost incurred by an entity for borrowed funds, referring to the interest payments made on any form of debt for a specific period.