Which of the Following Transactions Adds to U

question 7

Multiple Choice

Which of the following transactions adds to U.S.GDP for 2015?

• A)In 2015,Frank's Feta manufactures 2000 pounds of cheese that will eventually be sold to grocery stores.The 2000 pounds of cheese remains in Frank's inventory at the end of 2015.
• B)An Irish marketing consultant works in Richmond during the summer of 2015 and earns $45,000 during that time.
• C)When Len and Mika were both single,they lived in separate apartments and each paid $700 in rent.Len and Mika got married in 2015 and they bought a previously unoccupied house that,according to reliable estimates,could be rented for $1,500 per month.
• D)All of the above transactions add to U.S.GDP for 2015.

---

Definitions:

Revenue

The total amount of money a company receives from its business activities, such as sales of goods and services, before any expenses are deducted.

Expense

The money spent or costs incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Income Statement Columns

Sections within an income statement that separate financial data, such as revenues, expenses, and profits, to provide a clear overview of a company's financial performance.

Net Income

The final amount a company earns, which is the total revenue minus all expenses, taxes, and costs.