Which of the Following Is Not True About the Composition

question 126

Multiple Choice

Which of the following is not true about the composition of GDP in 2016?

• A)The majority of consumer spending is on durable goods.
• B)Purchases made by state and local governments are greater than purchases made by the federal government.
• C)Imports are greater than exports.
• D)Business fixed investment is the largest component of investment.

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Definitions:

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are a set of rules and standards used in financial reporting and accounting in the United States.

Impairment Losses

The decrease in an asset's net carrying value that exceeds its recoverable amount.

Held-to-Maturity

A classification for investment securities that a company intends and has the ability to hold until they mature.

IFRS

IFRS stands for International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at making global financial statements more comparable, transparent, and reliable.