The Largest Spending Component of GDP in the United States

question 174

Multiple Choice

The largest spending component of GDP in the United States is:

• A) consumption.
• B) investment.
• C) government spending.
• D) net exports.

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Definitions:

Intangible Assets

Non-physical assets that have value, such as intellectual property, brand recognition, and patents.

Prepaid Expenses

Payments for goods or services that will be received in the future, which are recorded as assets until they are actually used or consumed.

Adjusting Entry

A journal entry made at the end of an accounting period to align the books with the accrual basis of accounting.

Supplies Expense

Costs incurred for office or operational supplies used within a business during a specific accounting period.