The Components of the Expenditure Approach to Measuring GDP Include

question 377

Multiple Choice

The components of the expenditure approach to measuring GDP include all of the following EXCEPT

• A) net exports.
• B) government expenditure on goods and services.
• C) investment.
• D) the implicit payments for unpaid household work.

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Definitions:

Average Collection Period

A financial metric that measures the average number of days it takes for a company to collect payments from its customers.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Net Credit Sales

The total revenue from sales made on credit minus any returns or allowances, representing the actual amount expected to be collected from customers.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and changes.