Which of the Following Is False

question 64

Multiple Choice

Which of the following is false?

• A)​We do not have information on nonmarket transactions output that is reliable enough to include it in the GDP.
• B)​The most important nonmarket transaction omitted from GDP are services provided directly in the home.
• C)​The value that individuals place on leisure is omitted in calculating GDP.
• D)​All goods and services exchanged in the current period are included in this year's GDP.

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Definitions:

Direct Method

An accounting method used to allocate service department costs directly to producing departments without any intermediate allocation.

Operating Activities

Operating activities involve the primary, day-to-day activities that a company engages in to generate revenue, such as sales, provision of services, and production.

Credit Sales

Sales made on credit, where the payment is received after the delivery of the goods or services.

Cash Dividends

Cash dividends are payments made by a company out of its profits to shareholders, distributed in cash, representing a share of the corporation's earnings.