GDP Is Different Than GNP in That

question 4

Multiple Choice

GDP is different than GNP in that

• A) it accounts for net unilateral transfers.
• B) it does not account for indirect business taxes.
• C) it does not account for a country's production using services with foreign-owned capital.
• D) it accounts for depreciation.
• E) it is unhelpful when tracking national income.

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Definitions:

Liquidity

The ability of a company or individual to quickly convert assets into cash without significant loss in value, essential for meeting short-term obligations.

Accounts Receivable

Funds due to a company from its clients for products or services that have already been provided but remain unpaid.

Net Sales

The total revenue a company generates from its sales activities after subtracting returns, allowances, and discounts.

Ending Accounts Receivable

The amount owed to a company by its customers for goods or services delivered but not yet paid for at the end of an accounting period.