What Adjustment to a Nation's Debt Measure Is Often Used

question 101

Multiple Choice

What adjustment to a nation's debt measure is often used when comparing debt across countries or across time periods in the same country to give a sense of the burden of the debt?

• A) net national debt as a percentage of tax revenue
• B) net national debt multiplied by a price index
• C) net national debt as a percentage of GDP
• D) net national debt divided by the population growth rate

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Definitions:

Recording Business Transactions

The process of documenting the financial activities of a business in accounting records according to established principles.

Operating Cycle

Average time it takes to buy and sell merchandise and then collect accounts receivable.

Financial Statements

Financial statements are formal records that outline the financial activities and condition of a business, entity, or individual, encompassing the balance sheet, income statement, and cash flow statement.

General Journal

The primary bookkeeping record in double-entry accounting, used to record all transactions by date, before they are posted to individual accounts in the general ledger.