Which of the Following Is Included in the Investment Component

question 5

Multiple Choice

Which of the following is included in the investment component of GDP?

• A)spending on new business equipment such as power tools and spending on stocks and bonds
• B)spending on new business equipment such as power tools but not spending on stocks and bonds
• C)spending on stocks and bonds but not spending on new business equipment such as power tools
• D)neither spending on new business equipment such as power tools nor spending on stocks and bonds

---

Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Accounts Payable

A liability account on a company’s balance sheet representing money owed to creditors for goods and services purchased on credit.

Special Journals

Accounting journals designed for recording specific types of transactions in detail, such as sales, purchases, cash receipts, and disbursements, for efficient processing.

Cash Receipts Journal

A dedicated accounting ledger for documenting all cash inflows.