In 1969 Don Bought a Dodge Dart for $2500

question 112

Multiple Choice

In 1969 Don bought a Dodge Dart for $2500. He drove this car until 2006, when he bought a Honda Civic for $22 000. If the price index in 1969 was 36.7 and the price index in 2006 was 190, what is the price of the Dodge Dart in 2006 prices?

• A)$3583
• B)$4500
• C)$9762
• D)$12 943

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Definitions:

GAAS Auditing

Standards that guide the conduct of audits on the financial statements of companies, known as Generally Accepted Auditing Standards.

Adverse Opinion

An auditor’s opinion that states that deviations from generally accepted accounting principles are so serious that an unqualified opinion is impossible and a qualified opinion is not justified.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

FASB

Stands for Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.