An Index Number Expresses the Value of a Variable in Any

question 43

Multiple Choice

An index number expresses the value of a variable in any given period

• A)as an absolute compared to the base period.
• B)as a percentage of its value in the base period.
• C)as a proportional weighted average.
• D)as an average of its value in the base period.
• E)as a weighted average.

---

Definitions:

Treasury Stock

Stocks that the issuing corporation has distributed and then bought back, diminishing the number of shares available for trade on the public market.

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.

Corporations

are legal entities that are separate from their owners, providing limited liability protection, and have the ability to own assets, incur liabilities, and sell stock.

Special Purpose Equipment

Equipment that is designed and built for a specific task or function, which is not easily adaptable for other uses.