Table 22-3 -Refer to Table 22-3

question 87

Essay

Table 22-3
$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Real GDP per Capita } \\\text { (2009 prices) }\end{array} & \begin{array} { c } \text { Growth Rate in Real } \\\text { GDP per Capita }\end{array} \\\hline 2013 & \$ 28,000 & \\\hline 2014 & 29,000 & \\\hline 2015 & 30,000 & \\\hline 2016 & 31,000 & \\\hline\end{array}$$
-Refer to Table 22-3.Use the table above to calculate the annual growth rate in GDP.Also calculate the total percentage change in the growth from 2013 through 2016.Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.

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Definitions:

Permanent Accounts

Balance sheet accounts that carry their balances over into the next accounting period as they are not closed or reset at the end of the fiscal year.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary to permanent accounts.

Income Summary

An account used in the closing process that summarizes all income and expenses for the period, leading to the net profit or loss.

Reversing Entry

An accounting entry that is made at the beginning of a period to negate or cancel out the effects of an adjusting entry made at the end of the previous period.