Who Would Benefit from an Increase in the Consumer Price

question 214

Multiple Choice

Who would benefit from an increase in the Consumer Price Index (CPI) ?

• A)People on fixed incomes
• B)Wage earners with no cost of living increases
• C)People who owe other people money
• D)People who save

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Definitions:

Double Diminishing-Balance

A method of accelerated depreciation that computes depreciation at double the rate of the straight-line method.

Carrying Amount

The book value of assets or liabilities as recorded in the financial statements, after accounting for depreciation, amortization, or impairment.

Residual Value

The estimated remaining value of an asset at the end of its useful life.

Units-of-Production Method

A depreciation method that allocates expense based on the actual usage or output of the asset, reflecting its wear and tear more accurately.