Suppose That Inventories Were $80 Billion in 2012 and $70

question 62

Multiple Choice

Suppose that inventories were $80 billion in 2012 and $70 billion in 2013.In 2013,national income accountants would:

• A) add $10 billion to other elements of investment in calculating total investment.
• B) subtract $10 billion from other elements of investment in calculating total investment.
• C) add $75 billion (= $150/2)to other elements of investment in calculating total investment.
• D) subtract $75 billion (= $150/2)from other elements of investment in calculating total investment.

---

Definitions:

Debt-To-Equity Ratio

An indicator measuring the balance between financing a company's assets through shareholders' equity and debt.

Balance Sheet

The balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

is a financial statement that shows a company’s revenues, expenses, and profits over a specific period, providing insight into its profitability.

Debt-To-Equity Ratio

A ratio assessing the comparative contribution of debt and shareholder equity in the capital structure used for a company's assets.