Which of the Following Is Not Correct

question 88

Multiple Choice

Which of the following is not correct?

• A)GNP equals net national product plus losses from depreciation.
• B)For most countries,including the United States,GDP and GNP are nearly the same.
• C)GDP and GNP typically move in opposite directions.
• D)Personal income equals disposable personal income plus personal taxes plus certain nontax payments.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable that may not be collected.

Aging of Accounts Receivable

A method used to estimate the collectability of accounts receivable by categorizing them according to the length of time an invoice has been outstanding.