Which One of the Following Would Not Be Counted as Part

question 38

Multiple Choice

Which one of the following would not be counted as part of this year's GDP?

• A)The lumber you purchase when building bookshelves for your room.
• B)The government bond you buy for your newborn niece.
• C)The purchase of a new personal computer that was produced in the current year.
• D)The purchase of wheat that was produced in the current year by a Saskatchewan farmer.
• E)The purchase of a house that was produced in the current year.

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Definitions:

Prepaid Insurance

A current asset account that represents payments made for insurance services that will be consumed in future periods.

Posting Reference

An alphanumeric code or number used in accounting to indicate the ledger account that a journal entry has been posted to.

Journal Entry

A record of a financial transaction in an accounting system, detailing the accounts affected and the amounts debited and credited.

Transferring Debits

The process of moving debit entries from one account to another in accounting, typically to ensure accuracy in financial records.