Double Counting in the Resource Cost-Income Approach to GDP Refers

question 217

Multiple Choice

Double counting in the resource cost-income approach to GDP refers to

• A) corporate income being taxed twice
• B) the amount of income taxes paid to states that is taxable by the federal government
• C) calculating GDP twice using the income and expenditures methods
• D) adding the value of exports to GDP and subtracting the value of imports
• E) counting the total value of a final output in addition to the value of the inputs used to make it

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the total number of shares owned by shareholders.

Par Value

Refers to the nominal or face value of a bond, stock, or coupon as stated by the issuer.

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments due to changes in accounting policies, applied retrospectively.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net profit or loss.