Which of the Following Is an Example of a Good

question 15

Multiple Choice

Which of the following is an example of a good that would not count toward U.S. GDP?

• A) A T-shirt made by H&M in Cambodia
• B) A T-shirt made by Organi-tee in Oregon
• C) A LED TV made by Toshiba in Georgia
• D) A bottle of spring water made by Poland Springs in Maine

---

Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been reported in accounting periods up to the current date for an asset, reducing its book value.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or age.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.

Prepaid Insurance

Prepaid insurance refers to insurance premiums that have been paid in advance and are recorded as a current asset on the company's balance sheet until the period the insurance coverage relates to occurs.