If Consumers Purchase Fewer of Those Products That Increase Most

question 2

Multiple Choice

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket, then changes in the CPI:

• A)accurately reflect the true rate of inflation.
• B)understate the true rate of inflation.
• C)overstate the true rate of inflation.
• D)are unrelated to the true rate of inflation.

Calculate and journalize interest expenses and payments for bonds, including adjustments for accruals and discounts/premiums amortization.

Identify the differences between bonds issued at par, discount, and premium, and their respective accounting treatments.

Understand the concept of a bond sinking fund and its accounting treatment.

Distinguish between the interest method and the straight-line method for amortizing bond discount and premium.