When Prices Are Rising at a Rate of 3 Percent,the

question 52

Multiple Choice

When prices are rising at a rate of 3 percent,the cost of products and services would double in ________ years.

• A)3
• B)6
• C)18
• D)24
• E)72

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Definitions:

Normal Balance

Normal Balance refers to the typical or expected balance side (debit or credit) of an account based on double-entry bookkeeping principles.

Financial Statement

Formal records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Refers to types of accounts in accounting, where permanent accounts show cumulative amounts that carry over to future periods, and temporary accounts are closed at the end of each period.

Normal Balance

The side (debit or credit) of an account on which increases to the account are recorded under double-entry accounting.