Table 11-5
the Table Below Pertains to Napandsnack, an Economy

question 157

Multiple Choice

Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of a } \\\text { pilldw }\end{array} & \begin{array} { c } \text { Price af a } \\\text { Hotdlog }\end{array} \\\hline 2009 & \$ 40 & \$ 3 \\\hline 2010 & \$ 45 & \$ 4 \\\hline 2011 & \$ 50 & \$ 3 \\\hline\end{array}$$
-Refer to Table 11-5. If the base year is 2011, then the CPI

• A)increased from 2009 to 2010 and increased from 2010 to 2011.
• B)increased from 2009 to 2010 and decreased from 2010 to 2011.
• C)decreased from 2009 to 2010 and increased from 2010 to 2011.
• D)decreased from 2009 to 2010 and decreased from 2010 to 2011.

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Definitions:

Owner's Capital Account

An account that represents the total equity or ownership interest of the owner(s) in a business, reflecting contributions and withdrawals.

Closing Entries

Entries recorded at the conclusion of an accounting cycle to shift balances from temporary to permanent accounts.

Ledger

A book or other collection of financial accounts where all transactions are summarized and recorded.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time, offering a snapshot of its financial condition.