If San Diego Has a CPI of 165 and Los

question 62

Multiple Choice

If San Diego has a CPI of 165 and Los Angeles has a CPI of 145,this means _____.

• A) prices have risen faster in San Diego since the base year than they have in LA
• B) it essentially costs more to live in San Diego than in LA
• C) it costs less to live in LA than in San Diego
• D) pay in San Diego is,on average,20 percent higher than in LA

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Definitions:

Other Expenses

Non-operating expenses that do not relate to the main operating activities of the business; they appear in a separate section on the income statement. One example given in the text is Interest Expense, interest owed on money borrowed by the company.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Supplies Used

The cost of consumables used in the operation of a business during an accounting period.

Total Liability

The combined amount of debts and obligations that a company owes to outside parties.