The Table Below Shows Hypothetical Per-Minute Cell Phone Charges for "Pay-And-Talk

question 98

Multiple Choice

The table below shows hypothetical per-minute cell phone charges for "pay-and-talk" service over several years.
TABLE 2-2
-Refer to Table 2-2.Assume that 2008 is used as the base year,with the index number = 100.The value of the index number in 2012 is

• A)0.25.
• B)2.5.
• C)25.0.
• D)0.45.
• E)45.45.

---

Definitions:

Accounts Receivable

Payments pending from customers to a business for items or services that have been supplied but not yet remitted.

Cash Manager

An individual or team responsible for managing a company's cash flow to meet operational needs and investment goals.

Cash Cycle

The duration of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.

Firm's Profitability

Indicates how effectively a company generates profit compared to its expenses and other relevant costs.