Which of the Following Statements Is True

question 96

Multiple Choice

Which of the following statements is true?

• A) Base year prices are necessarily higher than current year prices.
• B) The CPI in the base year is always 100.
• C) If the CPI is 112 in year 1 and 123 in year 2,prices have risen by approximately 9.8 percent between the two years.
• D) b and c
• E) a,b,and c

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Definitions:

Financial Ratios

Metrics derived from financial statements that are used to evaluate a company's performance and financial health.

Total Sales

The aggregate revenue a company generates from the sale of goods or services before any deductions are made.

Compensation Paid

The total cash and non-cash payments that an individual or employee receives in exchange for their services or work performed.

Accounts Receivable Turnover

A ratio that measures how many times a business can turn its accounts receivable into cash during a period.