When Economists Refer to Intangible Items,they Are Referring to Such

question 70

Multiple Choice

When economists refer to intangible items,they are referring to such things as

• A)illegal goods,and the value of such items is included in GDP.
• B)illegal goods,and the value of such items is excluded from GDP.
• C)hair styling and dental care,and the value of such items is included in GDP.
• D)hair styling and dental care,and the value of such items is excluded from GDP.

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Definitions:

Discounting

The process of determining the present value of a payment or a stream of payments that will be received in the future.

Adjustments

Entries made in accounting records at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Account Balances

The amounts in financial accounts at a specific point in time, reflecting the difference between debits and credits.

Supplies Account

An account used in accounting to track the amount spent on supplies used within an organization.