Which of the Following Would Be Included in the Income

question 184

Multiple Choice

Which of the following would be included in the income approach to calculating U.S.GDP?

• A) Wage and salary payments to U.S.workers
• B) Purchases of automobiles by households
• C) Government purchases of guns and tanks and bombs
• D) Purchases of new trucks by Federal Express
• E) Purchases of new tractors by farmers

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Definitions:

Percentage Of Sales Method

An accounting technique used to forecast the future financial positions based on a set percentage of sales.

External Funds

Capital that comes from outside of a company, including debt financing and equity financing from external investors.

Sales Increase

The rise in the volume or value of sales of goods or services over a specified period compared to a previous period.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without borrowing new funds or seeking additional investment.