Data for Fuel Oil and Gasoline Purchased at Wholesale Prices

question 47

Multiple Choice

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table. What is your interpretation of the Laspeyres price index?

• A)Value rose 16.67%.
• B)Value rose 35.56%.
• C)Value rose 16.71%.
• D)Value rose 16.45%.

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Definitions:

Fair Value

The price at which an asset could be bought or sold or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest that is not based on the majority of voting rights.

Consolidation

The process of combining financial information from several departments or subsidiaries within a company into a single financial statement.

Controlling Financial Interest

A situation where an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.