-Refer to Table 5-2

question 22

Multiple Choice

-Refer to Table 5-2. Using 2018 as the base year, what can we conclude for 2017?

• A) Real GDP is $760, and the GDP deflator is 100.
• B) Real GDP is $760, and the GDP deflator is 125.
• C) Real GDP is $880, and the GDP deflator is 80.
• D) Real GDP is $950, and the GDP deflator is 80.

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Definitions:

Reconciliations

The process of ensuring that two sets of records, usually the balances of two accounts, are in agreement.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used globally.

U.S. GAAP

United States Generally Accepted Accounting Principles, which are a set of rules and standards for financial reporting and accounting practices in the U.S.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.