Consumer Goods That Are Produced,go into Inventory,and Are Not Sold

question 15

Multiple Choice

Consumer goods that are produced,go into inventory,and are not sold during the current period are

• A)counted as intermediate goods and so are not included in current period GDP.
• B)counted in current period GDP only if the firm that produced them sells them to another firm.
• C)included in current period GDP as inventory investment.
• D)included in current period GDP as consumption.

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Definitions:

Cash Dividends

Distributions of a company's earnings to shareholders in the form of cash.

Dividends Payable

A liability recorded when a company declares dividends but has not yet paid them to shareholders.

Cash Payments

Outflows of cash made by a business, including expenses, creditor payments, and other liabilities, during a specific period.

Statement of Cash Flows

It's a financial document summarizing the total cash entering a company from operational earnings and investment revenues, as well as the cash spent on business-related activities and investment outlays during a specific period.