Refer to the Information Provided in Table 7

question 110

Multiple Choice

Refer to the information provided in Table 7.3 below to answer the questions that follow.
Table 7.3

-Refer to Table 7.3.If 2010 is the base year,the inflation rate between 2010 and 2011 is ________ %,and the inflation rate between 2011 and 2012 is ________ %.

• A)7.4; 13.9
• B)6.1; 16.1
• C)3.9; 17.1
• D)10.2; 10.4

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Definitions:

Unearned Rent

Unearned rent is money received by a landlord for rent that has not yet been earned because the rental period has not occurred. It is recorded as a liability until the period passes.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.