Which of the Following Would Be Included in the GNP

question 230

Multiple Choice

Which of the following would be included in the GNP of Canada?

• A) A Canadian company produces and sells products in Brazil.
• B) A Brazilian company produces and sells products in Canada.
• C) A U.S. company produces and sells products in Canada.
• D) A Canadian company produces and sells products in Canada.
• E) It is not possible to tell given the information that is provided

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Definitions:

Gain On Disposal

The profit realized from the sale of assets other than inventory, exceeding the book value of the assets sold.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its purchase.

Accelerated Depreciation

A method of depreciation that allows a larger portion of an asset's cost to be deducted in the early years of useful life.

Freight Costs

The expenses incurred to transport goods from one location to another.