To Estimate the Value of U

question 130

Multiple Choice

To estimate the value of U.S.GDP from U.S.GNP, we must

• A)add the value of output produced by U.S.residents and sold abroad.
• B)add the income earned from the rest of the world by U.S.residents and subtract payments made by U.S.residents to the rest of the world.
• C)subtracting the value of output produced by U.S.residents and sold abroad.
• D)subtract the income earned from the rest of the world by U.S.residents and add payments made by U.S.residents to the rest of the world.

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Definitions:

Cash Flow Statement

The cash flow statement is a financial document that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financing activities.

Income Statement

A financial statement that shows a company's financial performance over a specific period, detailing revenues, expenses, and net income.

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained rather than being paid out as dividends to shareholders, often reinvested in the business or used to pay off debt.