The GDP of a Country Can Be Derived by Summing

question 51

Multiple Choice

The GDP of a country can be derived by summing

• A) the expenditures on final user goods and services produced domestically during the year.
• B) the payments to employees and owners of capital resources and then subtracting depreciation and indirect business taxes.
• C) the market value of all goods and services produced domestically during the period and then subtracting net exports from that figure.
• D) the income payments to the resource suppliers and net exports.

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Definitions:

Wages Expense

The total cost incurred by an enterprise for the wages paid to employees, reported on the income statement.

Operating Cycle

The time period between the acquisition of goods for sale and the receipt of cash from customers, measuring the efficiency of a company's operational processes.

Inventory Purchases

Transactions involved in buying goods and materials to be sold or used in the production process by a business.

Collection of Cash

Collection of cash involves the process of receiving cash payments from customers or clients, typically recorded as an increase in cash or cash equivalents on the balance sheet.