An Increase in the Price of Bread Produced Domestically Will

question 8

Multiple Choice

An increase in the price of bread produced domestically will be reflected in

• A)both the GDP deflator and the consumer price index.
• B)neither the GDP deflator nor the consumer price index.
• C)the GDP deflator but not in the consumer price index.
• D)the consumer price index but not in the GDP deflator.

---

Definitions:

AASB 101

The Australian Accounting Standards Board document specifying the presentation of financial statements, providing guidelines for structure and minimum requirements for their content.

Impairment of Assets

A decrease in the recoverable value of an asset below its carrying amount, leading to an adjustment of its valuation on the balance sheet.

Financial Position

The status of the assets, liabilities, and equity of an entity as detailed in the balance sheet, indicating the entity’s economic resources and obligations at a given time.

AASB 101

The Australian Accounting Standards Board guideline concerning the presentation of financial statements.