Which of the Following Statements Is True

question 26

Multiple Choice

Which of the following statements is true?

• A)GDP calculated by income approach is greater than GDP calculated by expenditure approach.
• B)GDP calculated by product approach is greater than GDP calculated by expenditure approach.
• C)GDP calculated by expenditure approach is greater than GDP calculated by product approach.
• D)All three approaches for calculating GDP will result in the same value for GDP.

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Definitions:

Going Concern

An assumption that a company will continue to operate in the foreseeable future, without the intention or necessity of liquidation.

Financial Restructuring

The process of reorganizing a company's financial structure through various means, including changing the mix of debt and equity.

Capital Structure

The mixture of debt and equity that a company uses to finance its operations and growth.

Tax Shield

The reduction in income taxes that result from taking a deductible expense, such as mortgage interest, which reduces taxable income.