In 2016 Final Sales Equal $200 Billion, and the Change

question 12

Multiple Choice

In 2016 final sales equal $200 billion, and the change in business inventories is $50 billion. GDP in 2016

• A) is $250 billion.
• B) is $200 billion.
• C) is $150 billion.
• D) is $40 billion.

---

Definitions:

Prepaid Insurance

An asset account that represents the amount paid for insurance contracts in advance for future coverage.

Insurance Expense

The cost associated with purchasing insurance coverage, recognized as an expense over the policy period.

Adjusting Entry

An accounting journal entry made at the end of an accounting period that ensures all financial statements are updated to reflect accurate and fair information.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update income and expense accounts and ensure that the financial statements reflect the accrual basis of accounting.