Suppose a Basket of Goods and Services Has Been Selected

question 335

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been selected as the base year.In 2002,the basket's cost was $50;in 2004,the basket's cost was $52;and in 2006,the basket's cost was $54.60.The value of the CPI in 2006 was

• A) 91.6.
• B) 104.6.
• C) 109.2.
• D) 154.6.

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Definitions:

General Ledger

A complete record of all the financial transactions of a company, organized by accounts, which provides the data used to create financial statements.

Chart of Accounts

An organized list of all the account titles and numbers used in the ledger of a company to classify transactions.

Transactions

Business activities or events that have a financial impact on the finances of a company, recorded in the accounting records.

T-Accounts

A graphic representation of financial transactions in the general ledger of a double-entry bookkeeping system where the left (debit) and right (credit) sides reflect different types of transactions.