Which of the Following Is True About Index Numbers? Index

question 39

Multiple Choice

Which of the following is true about index numbers? Index numbers are:

• A) used to measure the trend component.
• B) used to measure the seasonal component.
• C) used to measure the cyclical component.
• D) used to make a relative comparison of different time periods.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting and accounting practices in the United States.

Disclaimer of Opinion

An auditor's statement indicating inability to express an opinion on the fairness of financial statements due to limited information or uncertainties.

Adverse Opinion

An auditor's opinion indicating that a company's financial statements do not fairly represent its financial position, results of operations, or cash flows, often due to misstatements or non-compliance with accounting standards.

GAAP

GAAP (Generally Accepted Accounting Principles) are standardized guidelines for accounting practices and financial reporting in the United States.