An Example of an Item That Would Be Excluded from a Measure

question 34

Multiple Choice

An example of an item that would be excluded from a measure of GDP from the expenditure side is

• A)a new truck purchased by a furniture- delivery company.
• B)government pension payments to a retired person.
• C)the purchase of windows by an automobile assembly plant.
• D)the purchase of a tattoo for Mary Smith's ankle.
• E)fertilizer purchased by Farmer Jones to increase crop yields.

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Definitions:

Unearned Ticket Revenue

Revenue received from tickets sold for future events, which is considered a liability until the service (the event) is provided.

Adjusted Trial Balance

An accounting worksheet that reflects the account balances after adjustments are made for accruals and deferrals at the end of a reporting period.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, indicating the profitability over a specified time period.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets.