If the Consumer Price Index in June 2006 Was About

question 57

Multiple Choice

If the Consumer Price Index in June 2006 was about 202.9 (1982-84 = 100) ,what was the purchasing power of the dollar?

• A)$1.00
• B)$0.33
• C)$0.58
• D)$0.49

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate over time until its maturity.

Journal Entry

A record in accounting that documents a business transaction in the ledger, consisting of the debits and credits that impact various accounts.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.