Which of the Following Actions Will Decrease the Gross Domestic

question 102

Multiple Choice

Which of the following actions will decrease the gross domestic product (GDP) ?

• A)Tom's alarm clock breaks,so he buys a new one.
• B)Tom buys a new alarm clock because he tends to sleep through the first alarm.
• C)Tom's alarm clock breaks.He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home.
• D)Tom gets fired for being late often after his alarm clock breaks.
• E)Tom sells his broken alarm clock and uses the money to buy some French fries.

---

Definitions:

Sales Journal

A specialized accounting journal used to record all sales transactions of a company on credit.

Accounts Receivable Subsidiary Ledger

A ledger detailing individually the amounts owed by each customer, supplementing the general ledger's summary account.

Posting Frequency

The regularity with which financial transactions are recorded and posted in the accounting system.

Accounts Payable

Liabilities of a business that are due to vendors or suppliers for goods or services received that have not yet been paid for.