In the Calculation of GDP by the Expenditure Approach, Exports

question 285

Multiple Choice

In the calculation of GDP by the expenditure approach, exports from the United States must be

• A) subtracted because they are included in the consumption of a foreign country.
• B) ignored because they are not bought by U.S. citizens.
• C) subtracted if they are bought by foreign firms for investment purposes.
• D) added.

Realize the importance of choosing the appropriate cost allocation method for accurate product costing.

Understand the implications of overhead cost allocation on external reporting under GAAP.

Understand the structure and components of the income statement, including continuing operations, extraordinary items, and discontinued operations.

Identify and differentiate between ordinary and extraordinary items on the income statement.

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Definitions:

Misplaced File

A document or electronic file that is not in its correct or designated location, potentially leading to inefficiency or loss of information.

Reconstruct

To rebuild something that has been damaged or destroyed back to its original state.

Original Documents

The authentic, first-generation documents or records, not reproductions or copies.

Charismatic

Possessing a compelling charm or appeal that inspires devotion or attraction in others.