The Cost of One of the Following Products Has Changed

question 51

Multiple Choice

The cost of one of the following products has changed very differently from the others over time. Which is the odd one out?

• A)food
• B)clothing
• C)computers
• D)oil
• E)housing

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Definitions:

Accrual Basis Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is received or paid.

Adjusting Entry

An accounting record made to update the financial statements to reflect income earned or expenses incurred but not yet recorded.

Employee Wages

Payment given to workers for their services, usually determined by the hour, day, or work completed.

Net Income

The amount of money remaining after all operating expenses, taxes, and interest have been subtracted from total revenue.