Use the Following to Answer Questions: Table: Consumer Price Index

question 52

Multiple Choice

Use the following to answer questions: Table: Consumer Price Index $$\begin{array} { l c } \hline \text { Year } & \begin{array} { l } \text { CPI } \\\text { (End-of-Yea } \\\text { r Value) }\end{array} \\\hline 2005 & 195.3 \\2006 & 201.6 \\2007 & 207.3 \\2008 & 215.3 \\2009 & 214.5 \\2010 & 218.1 \\\hline\end{array}$$
-(Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. In which year was the inflation rate the highest?

• A) 2006
• B) 2007
• C) 2008
• D) 2009

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Definitions:

Dollar-Value LIFO

An inventory valuation method that uses the last-in-first-out (LIFO) principle, adjusted for changes in the dollar's value.

Relevant Price Index

An index that measures changes in the price level of a specific set of goods or services relevant to a particular context.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Aggressive Revenue Recognition

A practice where a company prematurely or improperly records revenue to make its financial performance appear better.