Additions to Inventory Is

question 21

Multiple Choice

Additions to inventory is

• A)counted as an intermediate input.
• B)considered national savings.
• C)not counted as an expenditure in GDP accounting.
• D)counted as a component of investment spending.
• E)subtracted from sales revenue in calculating profit income.

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Definitions:

Earnings Per Share

Earnings Per Share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Dividend Paid

Cash payment distributed to shareholders out of a company’s earnings, reflecting a return on the investment made in the company's equity.

Repurchase Outstanding

A corporate finance strategy where a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Current Ratio

A ratio that determines a company's capacity to fulfill immediate financial commitments using its present assets.