Which of the Following Might Be Monitored as an Indicator

question 35

Multiple Choice

Which of the following might be monitored as an indicator of inflation?

• A)consumer price index
• B)gold prices
• C)oil prices
• D)All of these may be indicators of inflation.

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Definitions:

Carrying Amount

The book value of an asset or liability on a company's balance sheet, calculated as its original cost minus depreciation, amortization, or impairment costs.

Disposal of an Asset

The process of selling, scrapping, or otherwise removing an asset from the company's balance sheet due to its disposal, sale, or obsolescence.

Depreciation Recorded

The process of allocating the cost of a tangible asset over its useful life to account for the loss of value over time.

Diminishing-Balance Method

A method of calculating depreciation of an asset, where the asset loses value at a fixed percentage rate every year over its useful life.