Which Statement Is True

question 211

Multiple Choice

Which statement is true?

• A)GDP tells us what we produce.
• B)GDP estimates the value of household and illegal production.
• C)Per capita real GDP is found by dividing population by real GDP.
• D)International comparisons of per capita real GDP may be made with less caution than comparisons over time within a given country.
• E)None of the statements are truE.

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Definitions:

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase price.

FASB's Proposal

A suggested change or addition to accounting standards published by the Financial Accounting Standards Board.

Employee Stock Options

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, usually at the discretion of the bondholder.