The Difference Between Gross Domestic Product (GDP) and Gross National

question 93

Multiple Choice

The difference between gross domestic product (GDP) and gross national product (GNP) is that GNP includes _____.

• A) net property income from abroad
• B) depreciation
• C) subsides and taxes
• D) consumption and investment

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Definitions:

Period-End

Marks the conclusion of an accounting period, at which point various accounting entries are finalized, and reports are prepared.

Current Asset Account

An account on the balance sheet representing the value of assets that are expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.

Inventory Returns Estimated

An accounting estimate of the goods that will be returned by customers and subtracted from sales revenue.

Period-End Adjusting Entry

Journal entries made at the end of an accounting period to update the balances of certain accounts and ensure compliance with the accrual basis of accounting.