GDP May Be Calculated by Totaling Either the Market Values

question 121

True/False

GDP may be calculated by totaling either the market values of all final goods and services or the income earned during production of those final goods and services.

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Definitions:

Self-Contained Unit

A segment or part of a business that operates independently or contains all necessary elements to function independently.

Current Rate Method

In currency translation, the method that uses the exchange rate at the balance sheet date to convert all financial statement items from a foreign entity's functional currency to the reporting currency.

U.S.GAAP

United States Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the U.S.

Temporal Method

An accounting method for converting foreign currency transactions based on exchange rates at the time the transactions are made.