If the Price of Bluetooth Headsets Rises 12 Percent During

question 108

Multiple Choice

If the price of Bluetooth headsets rises 12 percent during a year when the level of average prices rises 13 percent,the relative price of Bluetooth headsets

• A)Remains constant.
• B)Increases.
• C)Decreases.
• D)More information is required to answer this question.

---

Definitions:

Depreciation Expense

Depreciation expense is the allocated amount of the cost of a tangible or physical asset that is expensed over its useful life, reflecting wear and tear or obsolescence.

Gain On Sale

The profit realized when an asset is sold for more than its book value.

Indirect Method

A way of presenting the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.