GDP Includes the Goods and Services Produced

question 31

Multiple Choice

GDP includes the goods and services produced

• A)by a country's citizens but not by non-citizens within the country's borders.
• B)within a country's borders by citizens and non-citizens minus production abroad by the country's citizens.
• C)within a country's borders by citizens and non-citizens plus goods produced abroad by the country's citizens.
• D)by a country's legal citizens regardless of where in the world they are located.
• E)within a country's borders by citizens and non-citizens.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in the United States.

Operating Activities

Operating activities relate to the primary revenue-generating activities of a business, influencing its net income and cash flows from operations.

Prepaid Expenses

Prepaid expenses represent payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet until they are consumed or used.

Operating Activities

Transactions and events related to the primary business activities, such as selling products or services, which are reflected in the cash flows.