Exhibit 12-A GDP - Expenditure Approach

question 36

Multiple Choice

Exhibit 12-A
GDP - Expenditure Approach
-Refer to Exhibit 12-A.Government purchases (G) for the year in question is:

• A)$1,350 billion.
• B)$3,400 billion.
• C)$2,100 billion.
• D)$2,550 billion.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses, indicating the profit made during a specific period.

Operating Activities

Activities directly related to the operation of the business, including production, sales, and day-to-day business management.

FASB

The Financial Accounting Standards Board is an independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.