In Calculating GDP, All of the Following Are Excluded Except

question 103

Multiple Choice

In calculating GDP, all of the following are excluded except

• A)purchases of stocks and bonds.
• B)the value of all homes built in the year but not sold.
• C)the value of intermediate goods.
• D)the value of used goods.
• E)subsidies from the government.

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Definitions:

Periodic Inventory Method

An inventory accounting method where physical counts are used to determine the cost of goods sold and ending inventory at specific intervals.

Petty Cash

A small amount of cash on hand used for covering minor expenses in an organization.

Periodic Inventory Method

An accounting method where inventory is updated and the cost of goods sold (COGS) is calculated at the end of an accounting period, instead of recording inventory transactions as they happen.

Delivery Expense

Costs incurred in transporting goods from a seller to the purchaser, which may include shipping fees, fuel, and labor.