Subtracting the Purchase of Intermediate Products from the Value of the Sales

question 78

Multiple Choice

Subtracting the purchase of intermediate products from the value of the sales of final products determines the amount of:

• A)net investment for a business.
• B)profit and cost.
• C)value added from the economic activity.
• D)surplus or deficit from the economic activity.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Auditors

Independent professionals who examine the financial records and business transactions of a company to ensure accuracy and compliance with accounting standards.

Self-Regulation

The process whereby an industry or profession monitors and enforces its own standards and practices without external oversight.

Debt Financing

The practice of borrowing funds from external sources, typically through loans or bonds, to finance business activities.