What Does the GDP Price Index in the Current Year

question 90

Multiple Choice

What does the GDP price index in the current year need to be in order to conclude that there has been inflation since the base year?  

• A) <0 
• B) 0 
• C) <100 
• D) >100

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been deducted from total revenue.

Indirect Method

A technique used in cash flow statement preparation that starts with net income and adjusts for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.

Operating Activities

Business actions that pertain to the primary operations of a company, including production, distribution, and other processes that generate revenue.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total revenue.