The Concept of Value Added Refers to

question 169

Multiple Choice

The concept of value added refers to

• A)the amount paid in the final sale of a product or service.
• B)the amount subtracted from the value of resources because of depreciation.
• C)the amount subtracted from the value of goods because of inflation.
• D)the increase in the value of a product that occurs at each stage of production.
• E)the total value of all intermediate goods used in the production of the final good.

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Definitions:

Health Care Entities

Organizations involved in the provision of health care services such as hospitals, clinics, and nursing homes.

Statement of Activities

A financial report that shows all revenue and expenses for a specific period, often used by nonprofit organizations.

Net Assets

The difference between total assets and total liabilities, indicating the actual worth of an organization's equity.

Donor Restrictions

Constraints placed by donors on how their contributions can be used by the receiving organization.