The Price Index That Measures the Average Rate of Change

question 33

Multiple Choice

The price index that measures the average rate of change in the prices received by domestic producers of goods and services is called the:

• A)PCE deflator.
• B)CPI.
• C)GDP deflator.
• D)PPI.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account designated to approximate the amount of a company's accounts receivable that is likely uncollectible.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Maturity Value

The amount that will be payable to the holder of a financial instrument at the date of its maturity; it includes the principal amount plus any accrued interest.