Accountants

question 30

Multiple Choice

Accountants:

• A) generally construct financial statements using the cash-based approach
• B) generally construct financial statements using the accrual-based approach
• C) must apply Generally Accepted Accounting Principles to fairly portray how the firm has performed in the past
• D) must apply Generally Accepted Accounting Principles to fairly portray how the firm will perform in the future
• E) both (b)and (c)

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Definitions:

Injections

In economic terms, it refers to the introduction of income into the flow of the economy through investment, government spending, or exports.

Consumer Price Index (CPI)

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the cost of living.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Gross Domestic Product (GDP)

The market value of all final goods and services produced in the nation during a particular period, usually a year.