Which of the Following Items, If It Exists, Must Be

question 5

Multiple Choice

Which of the following items, if it exists, must be presented as a line item in the statement of financial position?

• A) Trade and other receivables;
• B) Revenue;
• C) Cost of sales;
• D) Share of profit of associates.

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Definitions:

Government Purchases

Involves spending by the government on goods and services that directly contribute to the economy's aggregate demand.

Real GDP

Real Gross Domestic Product, which is the inflation-adjusted measure of the total value of all goods and services produced within a certain time frame.

Price Level

A gauge for the mean cost of products and services across an economy at a given time.

Short-Run Aggregate Supply

Represents the total supply of goods and services that firms in an economy plan on selling during a short time period, based on the current price level.