What Is Gross National Income (GNI)and What Are Its Shortcomings

question 49

Essay

What is Gross National Income (GNI)and what are its shortcomings as an indicator of economic development and social well-being?

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Definitions:

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as paper, pencils, and cleaning materials.

Net Income

The net income a company achieves following the deduction of all costs, taxes, and expenses from its total earnings.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owners' share.