In Which Spending Category Would You Enter the Following Transaction

question 93

Multiple Choice

In which spending category would you enter the following transaction? Ford sells a Thunderbird from its inventory to an individual.

• A)Consumption
• B)Consumption and investment
• C)Investment
• D)Government purchases
• E)Net exports

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Definitions:

Financial Accounting

The field of accounting that focuses on providing information to external users such as investors, creditors, and regulators, primarily through financial statements.

GAAP

A set of widely accepted accounting norms and standards, referred to as Generally Accepted Accounting Principles, for the preparation of financial statements.

Line Positions

Roles in an organization directly involved in its core activities and responsible for achieving its primary objectives, as opposed to support or administrative positions.

Vice President

An officer in a company or institution, ranking below a president and typically responsible for a specific department or function.