Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions .
Exhibit: Price and Output Data for an Economy

-(Exhibit: Price and Output Data for an Economy) Assume that 1994 is the base period. In _____, nominal GDP increased over the previous year due to an increase in prices and not due to a change in output.

• A) 1996
• B) 1999
• C) 1995, 1997, and 1999
• D) 1998

---

Definitions:

Owner's Withdrawals

Money or other assets taken from the business by the owner for personal use.

Income Statement

An income statement is a financial report that shows a company's revenues, expenses, and profit over a specific period, illustrating its financial performance.

Balance Sheet

An overview report showing a business's assets, liabilities, and equity held by shareholders at a specific time.

Adjusted Trial Balance

A statement of all debits and credits in a double-entry accounting system, adjusted for any journal entries, used to verify the balance of accounts before producing financial statements.