The Three Approaches to Measuring GDP Are Called the

question 12

Multiple Choice

The three approaches to measuring GDP are called the

• A) accounting approach, the income approach, and the expenditure approach.
• B) product approach, the cost approach, and the expenditure approach.
• C) product approach, the income approach, and the expenditure approach.
• D) accounting approach, the statistical approach, and the income approach.
• E) accounting approach, the statistical approach, and the product approach.

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Definitions:

Book Value

The net value of an asset or company, calculated as total assets minus total liabilities and intangible assets such as goodwill.

Equipment

Tangible assets used in the operations of a business, often having a useful life longer than one year.

Accumulated Depreciation

The aggregate depreciation charged against a tangible asset over its useful life to represent wear and tear.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a fiscal period, determining the net income or loss.