Examlex

Solved

When a Firm Produces Consumer Goods and Adds Some to Inventory

question 25

Multiple Choice

When a firm produces consumer goods and adds some to inventory rather than selling them, how is the increase in inventory counted in GDP?


Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a long-term asset from the time of its purchase to the reporting date.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded for an asset since its acquisition.

Recognized Gain

The amount of profit that is reported for accounting or tax purposes, realized upon the sale or exchange of an asset.

Financing Charges

Costs associated with borrowing money, including interest, fees, and other charges.

Related Questions