A Simple Index Is Computed by Using the Values of One

question 39

Multiple Choice

A simple index is computed by using the values of one time series, while a(n) ________ index is based on a "market basket" consisting of more than one time series.

• A) weighted
• B) aggregate
• C) cyclical
• D) trend

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Definitions:

Minimum Cash Balance

The lowest amount of cash that a business decides to maintain in its accounts to ensure sufficient liquidity for routine operations.

Cash Disbursements

The outflow of cash for various purposes, including operating expenses, asset acquisitions, and debt payments.

Cash Receipts

The sum of all money received by a company during a specified period, from operations, investments, and financing.

Depreciation Expense

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.