Which of the Following Statements Is Most Correct

question 128

Multiple Choice

Which of the following statements is most correct?

• A)Personal consumption expenditures of $10.1 billion in 2009 accounted for about 41 percent of GDP; this percentage relationship has been very stable throughout the decade of the 2000s.
• B)Personal consumption expenditures of $1.1 trillion in 2009 accounted for about 11 percent of GDP; this percentage relationship has been very stable throughout the decade of the 2000s.
• C)Personal consumption expenditures of $10.1 trillion in 2009 accounted for about 11 percent of GDP; this percentage relationship has been very unstable throughout the decade of the 2000s.
• D)Personal consumption expenditures of $1.1 trillion in 2009 accounted for about 71 percent of GDP; this percentage relationship has been very unstable throughout the decade of the 2000s.
• E)none of the above.

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Definitions:

Expenses Incurred

The costs that have been consumed or used up in the operation of a business, contributing to the generation of revenue.

Adjusting Entries

The process of making entries in the ledger at the end of the accounting period to allocate profits and expenses to their actual period.

Costs Expire

When a cost is recognized as an expense, typically through depreciation for fixed assets or cost of goods sold for inventory, indicating it has been fully utilized in generating revenue.

Journalized

The process of recording financial transactions in a company's journal, which is the first step in the accounting cycle.