Index NumbersMCQMTP Nov 19Question 3835 of 197
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Circular test is the extension of

Options

AUnit test
BFactor reversal test
CTime reversal test
DNone of these
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Correct Answer

Option cTime reversal test

All Options:

  • AUnit test
  • BFactor reversal test
  • CTime reversal test
  • DNone of these

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Detailed Solution & Explanation

The **Circular Test** is a multi-period extension of the Time Reversal Test. While the Time Reversal Test is defined for two periods (0 and 1) as P01×P10=1\displaystyle P_{01} \times P_{10} = 1, the Circular Test extends this to three or more periods (0, 1, 2) as: P01×P12×P20=1P_{01} \times P_{12} \times P_{20} = 1 Thus, it is an extension of the time reversal test. Hence, **Option C** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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