(Table) Look at the Table of Data for Two Countries;

question 161

Multiple Choice

(Table) Look at the table of data for two countries; which country is likely to grow more rapidly? $$\begin{array} { | l | l | l | l | l | } \hline \text { Country } & \text { GDP for } 2016 & \text { Population } & \begin{array} { l } \text { Consumer } \\\text { purchases as a } \\\text { share of GDP }\end{array} & \begin{array} { l } \text { Investment as a } \\\text { share of GDP }\end{array} \\\hline \text { Econoland } & \text { S40 billion } & 20 \text { million } & 70 \% & 15 \% \\\hline \text { Macroland } & \$ 80 \text { billion } & 42 \text { million } & 80 \% & 9 \% \\\hline\end{array}$$

• A) Econoland because it will have a larger total investment
• B) Macroland because it will have a larger total investment
• C) Econoland because it will have larger investment per capita
• D) Macroland because it will have larger investment per capita

Distinguish between the different effects that omitting adjustments can have on financial statements.

Explain the reasons for updating accounts at the end of an accounting period under accrual accounting.

Understand the concepts of depreciation and amortization and how they affect financial statements.

Calculate and record adjustments for prepaid and accrued expenses.

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Definitions:

Illegal Drug Use

The use of drugs that are prohibited by law, including substances without a prescription or drugs banned by legislation.

Arson

The criminal act of deliberately setting fire to property, typically for malicious or fraudulent purposes.

Insurance Fraud

Illegally manipulating or fabricating claims with the intent to obtain undue financial benefit from an insurance policy.

White-Collar Crime

A category of non-violent crimes, usually committed in commercial situations for financial gain.