If the Basket of Goods and Services Used to Calculate

question 131

Multiple Choice

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

• A)325.
• B)200.
• C)450.
• D)225.

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Definitions:

Net Cash

The amount of cash that remains after deducting cash outflows from cash inflows, reflecting a company's cash liquidity.

Statement Of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash flows into operating, investing, and financing activities.

Investing Activities

Financial transactions and activities related to the acquisition and disposal of long-term assets and investments, typically reported on a company's cash flow statement.

Operating Activities

Business activities related to the day-to-day functions of a company involved in producing income, such as sales and administration.