Double Counting Occurs When ________ Included in the Calculation of the GDP

question 96

Multiple Choice

Double counting occurs when ________ included in the calculation of the GDP.

• A) inputs are
• B) unsold inventories are
• C) depreciation is
• D) household production is

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Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, including revenue generation and expense incurrence.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Income

A company's overall income after deducting all expenses and taxation from gross revenue.