Which of the Following Is Not Correct

question 10

Multiple Choice

Which of the following is not correct?

• A)The consumer price index gives economists a way of turning dollar figures into meaningful measures of purchasing power.
• B)The consumer price index is used to monitor changes in the cost of living over time.
• C)The consumer price index is used by economists to measure the inflation rate.
• D)The consumer price index is used to measure the quantity of goods and services that the economy is producing.

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Definitions:

Revenue Expenditure

Expenses incurred during the normal course of business that are expected to be consumed within the current accounting period.

New Equipment

Capital assets recently acquired by a company for use in its operations, potentially enhancing productivity or efficiency.

Building Account

An account used to record the costs associated with the construction or purchase of a building over time, which may include materials, labor, and overhead.

Land Purchased

The act of buying land, which is considered a fixed asset and is recorded on the balance sheet at cost, without depreciation.