An Example of an Intermediate Good Would Be

question 87

Multiple Choice

An example of an intermediate good would be

• A) lumber used by a consumer to build a fence in his or her yard.
• B) pencils purchased by a restaurant to be used to take orders.
• C) a new stove purchased by a consumer.
• D) an airplane purchased by the government.
• E) Social Security payments made by the government.

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Definitions:

Bonds Payable

A form of long-term debt issued by corporations or governments that promises to pay the bondholder a specified sum of money at future dates.

Consolidated Income Statement

A financial statement that aggregates the income and expenses of a parent company and its subsidiaries, presenting a unified financial performance.

Interest Expense

The cost incurred by an entity for borrowed funds, typically recognized on the income statement.

Goodwill

An intangible asset that arises when one company acquires another for a price higher than the fair value of its net tangible assets, representing elements like brand, customer base, and reputation.