The Value of an Economy's Total Output of Goods and Services

question 131

Multiple Choice

The value of an economy's total output of goods and services is called

• A)consumption.
• B)gross national product.
• C)gross domestic product.
• D)net national product.

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Definitions:

Net Sales

Sales income a company retains after accounting for returns, allowances for damaged or missing merchandise, and discounts.

Current Asset

Items of value that are likely to be cashed in, sold off, or expended either within the span of one year or over the course of the entity's standard operational cycle, should that be more extended.

Goodwill

An intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.