An Expenditure by the Government for Which No Products or Services

question 27

Multiple Choice

An expenditure by the government for which no products or services are received in exchange is called a

• A) tax.
• B) public good.
• C) transfer payment.
• D) multiplier.
• E) stabilizer.

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Definitions:

Inventory

Goods and materials that a business holds for the ultimate goal of resale or production.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as the standard guidelines for financial accounting.

Purchasing Department

The division within an organization responsible for acquiring goods, services, and equipment necessary for its operations.

Weighted Average Cost Flow Assumption

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.