The College Board Reports That Since 2000, College Tuition and Fees

question 315

Multiple Choice

The College Board reports that since 2000, college tuition and fees have increased by 146 percent whereas family incomes have risen less than 19 percent. This is an example of a(n) __________ condition.

• A)deflationary
• B)recessionary
• C)repressive
• D)inflationary
• E)depressive

---

Definitions:

Preference Shares

Equity securities that have preferential rights compared to common shares, often regarding dividends and asset distribution.

Consolidated Retained Earnings

The cumulative earnings or profits of a corporation and its subsidiaries after dividends have been paid out, as shown on the consolidated balance sheet.

Unrealized Intercompany Profits

Profits resulting from transactions between companies within the same group that have not yet been realized outside of the group.

Equity Method

A method of accounting for an investment where the investor recognizes income based on its share of the investee's profits or losses, adjusting the carrying amount of the investment.