The Table Given Below Reports the Value of the Different

question 12

Multiple Choice

The table given below reports the value of the different economic variables of a nation during a year.
Table 5.5
$\begin{array}{c}\text { GNP Data }\\\text { (Adjusted for net factor ícome from abroad) }\\\begin{array}{|l|l|}\hline \text { Consumption Spending } & \$ 1,150 \\\hline \text { Gross Investment } & \$ 320 \\\hline \text { Exports } & \$ 420 \\\hline \text { Capital Consumption Allowance } & \$ 60 \\\hline \text { Govermment Purchases } & \$ 200 \\\hline \text { Social Security Benefits } & \$ 365 \\\hline \text { Imports } & \$ 540 \\\hline \text { Personal Income Tax } & \$ 225 \\\hline\end{array}\end{array}$
-Refer to Table 5.5. For the economy described in the table above, personal income is:

• A) $1,235.
• B) $1,375.
• C) $1,325.
• D) $1,600.
• E) $1,855.

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Definitions:

Depreciation

The method of allocating the cost of a tangible asset over its useful life.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, following major financial scandals.

Financial Reports

Documents that detail the financial health and performance of a business, including balance sheets, income statements, and cash flow statements.

Rent Expired

The portion of the rental period that has elapsed or the cost of rent that has been used up over a specific accounting period.