Intermediate Goods Are Not Counted in GDP Because

question 197

Multiple Choice

Intermediate goods are not counted in GDP because:

• A)to do so would result in double counting.
• B)these goods are not produced for the market.
• C)these goods are produced in the underground economy.
• D)these goods involve financial transactions.

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Definitions:

Adjusting Journal Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Journal Entries

Records of financial transactions in the accounting system, typically involving a debit to one account and a corresponding credit to another account.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Asset Account

An account on a company's balance sheet representing resources owned by or owed to the company that have economic value.