The Table Below Includes Data for a One-Year Period Required

question 7

Multiple Choice

The table below includes data for a one-year period required to calculate GDP from the income side for a teeny-tiny economy.
TABLE 20-4
-Refer to Table 20-4.When calculating GDP from the income side,we need to add together the following items from the data provided:

• A)interest and investment income,business profits,depreciation,indirect taxes less subsidies.
• B)wages and salaries,business profits,indirect taxes less subsidies.
• C)investment expenditure,consumption expenditure,net exports.
• D)interest and investment income,business profits,depreciation.
• E)wages and salaries,interest and investment income,business profits,depreciation,indirect taxes less subsidies.

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Definitions:

Completed Contract

An accounting method where revenue and income are recognized only after a contract is finished or the work is completely done.

Percentage Of Completion

An accounting method used to recognize revenue and expenses of long-term contracts proportionally as the contract progresses toward completion.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total sales revenue.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.