Choose the Best Answer.A Price Index

question 72

Multiple Choice

Choose the best answer.A price index:

• A) always includes a base year.
• B) measures the cost of purchasing a market basket of output across different years.
• C) is normalized to 100 for the base year.
• D) always includes a base year,measures the cost of purchasing a market basket of output across different years,and is normalized to 100 for the base year.

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Definitions:

Unused Supplies

Supplies that have been purchased but not yet used in the operation of a business.

Prepaid Insurance

An asset account on the balance sheet that represents a payment made for insurance services that have not yet been received or used up within the period of the insurance contract.

Accrued Fees

Fees that have been incurred but not yet paid or recorded by the entity.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.