Which of the Following Is a True Statement About Real

question 214

Multiple Choice

Which of the following is a true statement about real and nominal GDP?

• A)If nominal GDP increases from one year to the next,we know that production of goods and services has risen.
• B)Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year.
• C)Increases in average prices do not affect the calculation of nominal GDP.
• D)If real GDP increases from one year to the next,we know that production of goods and services has risen.

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Definitions:

Operations

The day-to-day activities involved in running a business that are necessary for producing and delivering its goods and/or services to the market.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide the preparation of financial statements globally.

General Ledger

The master accounting document providing a complete record of all financial transactions of a company.