How Does "Net Domestic Income" Differ from Gross Domestic Product

question 28

Multiple Choice

How does "net domestic income" differ from gross domestic product? Net domestic income is GDP minus

• A)that part of it not actually paid to households,plus transfer payments to households.
• B)that part of it not actually paid to households,minus personal income taxes paid by households.
• C)that part of it not actually paid to households,plus transfer payments to households,minus personal taxes paid by households.
• D)replacement investment.
• E)the sum of corporate,personal and sales taxes paid to the government.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of receivables that may not be collectible.

Contra Asset

An account on a company's balance sheet that reduces the total amount of an asset, such as accumulated depreciation.