The Residents of Country a Earn $500 Million of Income

question 36

Multiple Choice

The residents of country A earn $500 million of income from abroad.Residents of other countries earn $200 million in country A.These earnings are accounted for in country A's

• A)GNP which is larger than GDP in country A.
• B)GNP which is smaller than GDP in country A.
• C)GDP which is larger than GNP in country A.
• D)GDP which is smaller than GNP in country A.

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Definitions:

Discounted Note

A short-term debt security sold for less than its face value that will pay the face value at maturity; it reflects the discounted present value of the future cash flow.

Proceeds

The total amount of money received from a transaction, such as the sale of an asset, before any deductions.

Replenish Petty Cash

The process of adding funds to a petty cash fund, typically done when the balance drops to a predefined level, to ensure availability of cash for small, immediate expenses.

Minor Expenditures

Small or insignificant costs that are usually of a non-recurring nature and may not be capitalized.