What Is the Difference Between a Final Good and an Intermediate

question 112

Essay

What is the difference between a final good and an intermediate good? Give one example of each. How are they treated in GDP calculations?

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Definitions:

Balance Sheet Approach

A method of estimating the net worth of a company by comparing its assets against its liabilities and shareholders' equity.

Receivables

Amounts owed to a company by its customers from sales or services provided on credit.

Bad Debts

Accounts receivable that a company has determined are uncollectible, leading to their recognition as a loss.

Adjustment

Amendments made to accounts or financial statements to correct errors, update values, or reallocate revenues and expenses.