Question

QUESTION 7 A balance sheet includes- O a assets; liabilities; net worth and- income; expenses; net worth Od assets; expenses; liabilities QUESTION 8 The U.S. government measures inflation using Oa the gross domestic product. O b the index of leading economic indicators 。c.consumer confidence index Od the consumer price index

Answer 1

7. Option a

Balance sheet includes assets, liability and net worth where

Assets = Liabilities + net worth

Income and expenses are part of profit and loss statement, and not part of balance sheet. Hence option b,c and d is incorrect.

8. Option d

Option a is incorrect as GDP measures total output produced within a country. It is measured to know the economic growth of the country.

Option b is incorrect as leading indicator gives the indication about the future economic condition of the country, whether the country is going toward recession or economic boom.

Option c is incorrect as consumer confidence index shows degreedof consumer optimism or behaviour towards saving, expenditure activity. It is a kind of leading indicator.

Option d is correct as consumer price index measures the change in price of basket of goods and services available to final consumer. Hence this option is correct.