Quality Motors Is a Japanese-Owned Company That Produces Automobiles;all of Its

question 89

Multiple Choice

Quality Motors is a Japanese-owned company that produces automobiles;all of its automobiles are produced in American plants.In 2008,Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S.and $13 million in Mexico.In addition,it sold $2 million from the previous year's inventory in the U.S.The transactions just described contribute how much to U.S.GDP for 2008?

• A)$12 million
• B)$14 million
• C)$25 million
• D)$27 million

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Definitions:

Financial Statement Analysis

The process of examining financial statements to assess a company's financial health and make investment decisions.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and practices used to prepare financial statements.

Industry Classification

A system for categorizing companies and stocks based on their primary business activities.

Du Pont Identity

A financial analysis formula that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage.