-Using the Data in the Above Table, If the Private

question 439

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Item } & \begin{array} { l } \text { Billions of } \\\text { dollars }\end{array} \\\hline \text { Exp orts of goods and services, } X & 500 \\\hline \text { Imports of goods and services, } M & \\\hline \text { Net taxes, } T & 750 \\\hline \text { Government exp enditure, } G & \\\hline \text { Saving, } S & 1,000 \\\hline \text { Investment, } I & \\\hline\end{array}$$
-Using the data in the above table, if the private sector runs a surplus of $250 billion, imports will equal $1,000 billion if

• A) government expenditure equals -$750 billion.
• B) the government sector runs a deficit of $750 billion.
• C) government expenditure equals -$1000 billion.
• D) investment equals -$1000 billion.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

General Ledger

The master accounting document that contains all the financial accounts and transactions of a company.

Unadjusted Trial Balance

A preliminary list of all accounts and their balances before any adjustments are made, used to check the accuracy of debits and credits in accounting records.

Accounting Cycle

The sequence of processes beginning with the recording of a transaction and ending with the posting to the financial statements, completed in each accounting period.