The Following Extracts Come from Ben’s Balance Sheets at 31

question 20

Multiple Choice

The following extracts come from Ben’s balance sheets at 31 May 20X1 and 20X2 are as follows:

Three of the following six statements are correct: Between 20X1 and 20X2:
1. There has been a decrease in working capital.
2. There has been an increase in working capital.
3. There has been a cash outflow in respect of debtors.
4. There has been a cash inflow in respect of debtors.
5. There has been a cash inflow in respect of stock.
6. There has been a cash outflow in respect of stock.
Which three statements are correct?

• A) 2, 3 and 5
• B) 2, 3 and 6
• C) 1, 4 and 5
• D) 1, 4 and 6

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Definitions:

Real GDP

The total value of all goods and services produced in a country in a year, adjusted for inflation or deflation.

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a comparison point.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.

Net Exports

Represents the difference between a country's total value of exports and its total value of imports over a certain period.