For Any Given Year,how Is the CPI Calculated

question 132

Multiple Choice

For any given year,how is the CPI calculated?

• A)the price of the basket of goods and services in the given year divided by the price of the basket in the base year, then multiplied by 100
• B)the price of the basket of goods and services in the base year divided by the price of the basket in the given year, then divided by 100
• C)the price of the basket of goods and services in the given year multiplied by the price of the basket in the base year, then divided by 100
• D)the price of the basket of goods and services in the base year divided by the price of the basket in the given year, then multiplied by 100

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Definitions:

Basis

The initial value of an asset for tax purposes, used to calculate depreciation, amortization, and determines the gain or loss on the asset's sale.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's assets and earnings.

Fiscal Year-End

The last day of a company's accounting period, which is used for financial reporting and tax purposes, and can vary between organizations.

Automatic Extension

A provision allowing taxpayers to automatically extend their deadline for submitting tax returns or other required documents, without needing to provide a reason.