Suppose Jack's Salary Increased from $100,000 to $200,000 Per Year

question 109

Multiple Choice

Suppose Jack's salary increased from $100,000 to $200,000 per year between 2004 and 2014 and the price index increased from 100 to 300 during the same period.Which of the following statements best describes Jack's situation?

• A)His real income and money income have both increased.
• B)His real income has increased and money income has decreased.
• C)His real income and money income have both decreased.
• D)His real income has decreased and money income has increased.
• E)His real income has remained unchanged.

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Definitions:

Partnership Assets

The resources and property owned by a partnership that are used for conducting its business activities.

Liabilities Priority

The order in which obligations or debts of a company or individual are to be paid if there are insufficient assets to pay all liabilities in full.

Fraudulent Act

refers to any deliberate deception intended to secure an unfair or unlawful gain, or to deprive a victim of a legal right.

Liability to the Partnership

Obligations or debts for which a partnership is responsible, including those incurred by individual partners acting within the scope of their partnership activities.