A Country's Consumer Price Index Was 124

question 16

Multiple Choice

A country's consumer price index was 124.0 at the end of year 1 and 130.7 at the end of year 2.Therefore,the rate of inflation during year 2 was about:

• A)6.7 percent
• B)5.4 percent
• C)3.2 percent
• D)13.6 percent
• E)15.4 percent

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Definitions:

Group Depreciation Method

An accounting technique used to depreciate a portfolio of assets collectively, often applied to assets with similar characteristics and useful lives.

Accumulated Depreciation

This represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Sum-Of-The-Years'-Digits Depreciation

An accelerated depreciation method that allocates a proportionally higher depreciation in the early years of an asset's life and less in the later years, based on a fraction determined by the asset's useful life.

Economic Life

The period over which an asset is expected to be usable for its intended purpose.