When Calculating GDP from the Expenditure Side,"actual Consumption Expenditures" Includes

question 46

Multiple Choice

When calculating GDP from the expenditure side,"actual consumption expenditures" includes

• A)a tractor purchased by an Ontario farmer.
• B)fees paid by Google Canada to a Toronto law firm.
• C)robotic equipment purchased by Bombardier.
• D)snow-plow equipment purchased by the City of Montreal.
• E)Canadian fashion designs purchased by a Swiss department store.

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Definitions:

Common Shares

Equity securities representing ownership in a company, giving holders voting rights and a share in the company's profits via dividends.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted for the investor’s share of the investee’s profit or loss.

Cost Method

An accounting method used to value an investment, wherein the investment is recorded at its acquisition cost without recognizing periodic income but dividends received are recorded as income.

NCI

An interest in a subsidiary not held by the controlling parent, representing a share of the subsidiary’s equity and profits or losses not owned by the parent company.