Assets, Liabilities, and Equity Accounts Are Not Closed; These Accounts

question 78

Multiple Choice

Assets, liabilities, and equity accounts are not closed; these accounts are called:

• A) Nominal accounts.
• B) Temporary accounts.
• C) Permanent accounts.
• D) Contra accounts.
• E) Accrued accounts.

Analyze how changes in the prices of goods and services in a simple economy affect the CPI.

Understand what real interest rates reveal about the economy that nominal rates do not.

Discuss the major problems associated with using the CPI as a measure of the cost of living.

Know the steps involved and the importance of calculating the consumer price index (CPI) and the inflation rate.