Let 1 Stand for ʺAny Given Periodʺ and 2 Stand

question 104

Multiple Choice

Let 1 stand for ʺany given periodʺ and 2 stand for ʺbase period.ʺ The formula of any index number can be written as

• A) value of index at 1 = absolute value at 1 × 100. absolute value at 2
• B) value of index at 1 = absolute value at 2 × 100. absolute value at 1
• C) value of index at 1 = relative value at 1 × 100. relative value at 2
• D) value of index at 1 = absolute value at 1 . absolute value at 2
• E) value of index at 1 = relative value at 1 . relative value at 2

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Definitions:

Statement of Cash Flows

A financial document that provides a summary of the amount of cash and cash equivalents entering and leaving a company, showing how the company raises and spends money.

Profit and Loss Statement

A financial document summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.

Income Statement

A financial document that reports a company’s revenues, expenses, and profits over a specific period.

Statement of Changes

A financial document detailing how an entity's equity has changed over a period of time due to various business activities.