-Refer to the Above Table

question 4

Multiple Choice

-Refer to the above table. Two countries have per capita real GDPs in 2015 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2065?

• A) A: $40,000; B: $60,000
• B) A: $35,550; B: $57,500
• C) A: $24,000; B: $35,200
• D) A: $15,000; B: $30,000

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities where net income is adjusted for changes in balance sheet accounts to arrive at cash provided by or used in operating activities.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, indicating the actual profit earned.

Adjusting

The act of making entries to update the financial statements to more accurately reflect revenues and expenses for a specific reporting period.

Operating Activities

The day-to-day activities of producing and selling goods and/or services, which are reflected in the cash flow statement.