An Index Which Compares Current Prices Times Current Quantities to Base

question 3

Multiple Choice

An index which compares current prices times current quantities to base period prices times base period quantities called?

• A) Laspayres' Price Index
• B) Paasche Price Index
• C) Value Index
• D) Fisher's Ideal Index
• E) Special Purpose Index

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Definitions:

Profitability

A measure of the efficiency and financial performance of a company, indicating the ability to generate income from operations.

Accounts Receivable Turnover

This is a financial ratio that measures how effectively a company collects debts from its credit customers, indicating the number of times average accounts receivable are collected during a period.

Sales In Receivables

Accounts receivable that result from sales transactions, indicating the amount of money customers owe a company.

Decimal Place

A position of a number to the right of the decimal point, indicating fractions of a base unit.