Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)If a contract is stated in nominal terms,unanticipated inflation will increase the value of the contract.
• B)COLAs adjust wage levels to take into account the consumer price index.
• C)Whenever inflation is unanticipated,it affects prices and wages the same,so workers' purchasing power remains unchanged.
• D)Unanticipated inflation means that all prices are rising at the same rate.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and shareholders' equity.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, outlining revenues, expenses, and net profit or loss.

Perpetual Inventory System

A system for managing inventory that instantly logs transactions of buying or selling inventory via computerized point-of-sale systems and software for enterprise asset management.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.