Suppose That 1982 Is the Base Year for the Consumer

question 150

Multiple Choice

Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270.What does this "270" mean?

• A) What cost $100 in 1982 on average cost 270 times as much in 2019.
• B) What cost $100 in 1982 on average cost $270 in 2019.
• C) What cost $100 in 1982 on average cost 0.27 times as much in 2019.
• D) What cost $100 in 1982 on average cost $27 more in 2019

Be able to journalize bond transactions including issuance, interest payment, amortization of discount/premium, and redemption.

Calculate the total interest expense over the life of a bond and understand the factors affecting it.

Understand and apply the concept of times interest earned ratio in evaluating a company’s ability to meet its interest obligations.

Grasp the effects of bond issuance at values different from face value on financial statements and transactions.

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