-In the Above Figure, If Actual GDP = $17 Trillion

question 126

Multiple Choice

-In the above figure, if actual GDP = $17 trillion, there is a budget ________ equal to ________.

• A) surplus; $0.2 trillion
• B) surplus; $1.3 trillion
• C) deficit; $0.2 trillion
• D) deficit; $1.1 trillion

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Definitions:

Ending Inventory

Refers to the value of goods available for sale at the end of an accounting period.

Inventory Turnover Ratio

A financial metric indicating the number of times a company sells and replaces its stock of goods during a certain period, used to assess the efficiency of inventory management.

FIFO

short for "First In, First Out," is an inventory valuation method where goods purchased or produced first are sold or used first.

Average Cost Formula

A method used in accounting to determine the cost of goods sold and ending inventory by calculating the average cost of all similar items in inventory.