A Simple Aggregate Index Compares the Sum of Values in the Current

question 12

True/False

A simple aggregate index compares the sum of values in the current period to the sum of values in a base period.

---

Definitions:

Cash Account

A financial account that tracks the flow of cash transactions, including both receipts and disbursements.

Cash Receipts

The collection of money (cash, checks, wire transfers) by a business from its customers.

Cash Payments

Payments of cash to fulfill debts or acquire goods and services.

T Accounts

A visual representation of a ledger account that separates debits and credits, making the accounting process simpler.