Having Taken Statistics, You Know That a Graph That Shows

question 1

Multiple Choice

Having taken statistics, you know that a graph that shows how the cost of attending your school has increased since 1980 should show the cost in real terms. To do this, you will

• A) report cost on the standard score scale (compute standard scores of costs).
• B) use the CPI to adjust each year's cost for changes in the buying power of a dollar.
• C) be sure to put cost on the horizontal axis of your graph.
• D) be sure to put cost on the vertical axis of your graph.
• E) use the median cost rather than the mean cost.

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Definitions:

Accounting Time Period

A specific duration of time for which financial statements are prepared, typically a quarter or a year.

Depreciation Expense

A rephrased definition: The charge to income, representing the allocation of the cost of an asset over its useful life during a specific period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Adjusting Entries

Accounting records made during the closing of a financial period to properly distribute expenses and revenues to the time they were truly incurred.