Which of the Following Is Treated Differently in Computations of GNP

question 48

Multiple Choice

Which of the following is treated differently in computations of GNP as compared with GDP?

• A)Sales in the underground economy.
• B)Goods produced by U.S.firms located in foreign countries.
• C)Intermediate goods.
• D)The value of services performed by housewives.

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Definitions:

Transaction Explanation

A description or rationale provided for each transaction within an accounting system, aiding in understanding and verifying the nature of the transaction.

Income Statement

Also known as profit and loss statement, it details a company’s financial performance, including sales, expenses, and profits over a period.

Owner's Equity Statement

An owner's equity statement is a financial document that shows changes in the equity of a company's owners over a period.

Owner's Capital

The amount of equity a business owner has in the company, representing their investment plus any retained earnings or losses.