Which of the Following Expressions Truly Represents the Calculation of a Country's

question 29

Multiple Choice

Which of the following expressions truly represents the calculation of a country's debt service ratio?

• A) (Interest plus amortisation) divided by exports.
• B) (Interest plus amortisation) divided by imports.
• C) (Interest plus amortisation) divided by foreign debt.
• D) (Interest plus amortisation) divided by GDP.

---

Definitions:

Subsequent Depreciation

The allocation of an asset's cost over its useful life, considering any adjustments made following the asset's initial measurement and recognition.

Revaluation Method

A method used to adjust the carrying value of an asset to its current market value on the balance sheet.

IFRS

The International Financial Reporting Standards (IFRS) provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.

Asset Exchange Transaction

A transaction where one asset is given up in exchange for another asset, with both having a measurable fair value.