Which Does NOT Belong in GDP

question 41

Multiple Choice

Which does NOT belong in GDP?

• A) Salaries for government employees.
• B) New trays purchased by a company for use in the cafeteria.
• C) Tractors purchased by a farmer.
• D) Police salaries in Toledo, Ohio.

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Definitions:

Date of Payment

The specific day on which payment is made or received.

Dividends Payable

A liability account recording the amount a company owes to its shareholders in announced dividends to be paid.

Retained Earnings

Retained earnings refer to the portion of a company's profits that is retained or kept within the company instead of being paid out to shareholders as dividends, to be reinvested in business operations or to pay off debt.