The Consumer Price Index (CPI)

question 105

Multiple Choice

The consumer price index (CPI) :

• A)is an average of the prices of all consumer goods purchased each year.
• B)measures changes in the prices of a market basket of some 600 goods and services purchased by urban consumers.
• C)measures prices of goods, but not services since services don't fit into a market basket.
• D)is also known as the GDP price index.

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Definitions:

Accounts Receivable

Accounts receivable from clients for merchandise or services supplied but payment not received.

Unearned Revenue

Money received by a company for goods or services yet to be provided, recorded as a liability on the balance sheet until earned.

Accounts Receivable

Unpaid amounts due to a company from its clients for delivered or utilized goods or services awaiting payment.

Land

It refers to the earth's surface extending downward to the center and upward to infinity, including permanently attached natural objects, and is considered a non-depreciable asset in accounting.