The Primary Advantage of the GPI Over the GDP as a Measure

question 45

Multiple Choice

The primary advantage of the GPI over the GDP as a measure of the production and well being of the economy is that it accounts for

• A)underground activities.
• B)productive nonmarket activities and depletion of resource base.
• C)quality of products.
• D)age distribution of population.

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Definitions:

Establishment Of Responsibility

An internal control principle focusing on assigning responsibility to specific employees to prevent fraud and errors.

Segregation Of Duties

An internal control measure that splits responsibilities among different people to reduce the risk of fraud and errors in the financial processes.

Credit Memorandum

A document issued by a supplier to a buyer, reducing the amount the buyer owes to the supplier, often due to a return or refund.

Internal Control Problems

Issues or weaknesses in a business's processes that can lead to inaccurate financial reporting, fraud, or operational inefficiency.