According to the BEA, in the Second Quarter of 2012

question 375

Multiple Choice

According to the BEA, in the second quarter of 2012 nominal GDP rose by 3.3 percent and real GDP rose by 1.7 percent. The difference between the change in nominal GDP and the change in real GDP could be explained by

• A) an increase in prices of final goods and services produced.
• B) a decrease in prices of final goods and services produced.
• C) an increase in quantity of final goods and services produced.
• D) a decrease in quantity of final goods and services produced.

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Definitions:

Expired

Refers to resources or benefits that have been fully used and cannot contribute to future operations.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Prepaid Expenses

Costs that are paid for in advance and recorded as assets until they are used or consumed, at which point they become expenses.

Asset Account

Represents a resource owned or controlled by a company that is expected to provide future economic benefits.