A USPublisher Purchases New Computers That Were Manufactured in the U

question 89

Multiple Choice

A U.S.publisher purchases new computers that were manufactured in the U.S.This purchase by itself makes

• A)a positive contribution both to investment and to GDP.
• B)a positive contribution both to consumption and to GDP.
• C)a positive contribution to GDP,but it does not affect investment or consumption.
• D)a positive contribution to investment,but it does not affect GDP.

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Definitions:

Accounts

Financial records of transactions that track the income, expenses, assets, liabilities, and equity of an entity.

Double-Entry System

An accounting method that records each transaction in at least two accounts, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced.

Debit Accounts

Accounts that are increased by debits and decreased by credits, commonly including assets and expenses.

Credit Accounts

Financial accounts that track money owed to creditors; they increase with credit entries and decrease with debit entries, reflecting the entity's borrowing of funds.