Real National Income

question 51

Multiple Choice

Real national income

• A)changes by the same amount and in the same direction as does nominal national income.
• B)refers to national wealth but is not an indicator of current production.
• C)refers to national income with no adjustment for changes in prices.
• D)always equals nominal national income.
• E)changes only when the underlying quantities change.

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Definitions:

Closing Entry

Entries recorded at the conclusion of an accounting period for the purpose of shifting balances from temporary accounts to permanent ones.

Balance Sheet Account

An account displayed on the balance sheet, which includes assets, liabilities, and equity accounts, representing a snapshot of a company's financial position at a specific point in time.

Accounting Cycle

The collective process of recording and processing the accounting events of a company, from the initial transaction to the preparation of financial statements.

Journalizing Transactions

The act of recording business transactions into accounting records in chronological order.