If the Laspeyres Price Index for a Basket of Goods

question 21

Short Answer

If the Laspeyres price index for a basket of goods is 128 and the Paasche price index for the same basket of goods for the same time period is 119, which of the following is the value of the Fischer price index, the geometric mean of these two indices? $\begin{array}{|l|l|}\hline A&\text { 123.5}\\\hline B&\text { 9}\\\hline C&\text {123.42 }\\\hline D&\text {None of these choices are correct. }\\\hline \end{array}$

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Definitions:

Correcting Entry

An entry made in accounting records to correct a mistake made in a previous recording.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific area, like accounts receivable or payable, which rolls up into the general ledger.

Compound Journal Entry

An accounting entry that involves more than two accounts, where there are multiple debits, multiple credits, or both.

Salvage Value

The appraisal of an asset’s market price at the exhaustion of its operational time.