Refer to the Information Provided in Table 6

question 128

Multiple Choice

Refer to the information provided in Table 6.7 below to answer the questions that follow.
Table 6.7
-If receipts of factor income from the rest of the world are less than payments of factor income to the rest of the world, then

• A) GDP is greater than GNP.
• B) GDP equals GNP.
• C) GNP equals NNP.
• D) GNP is greater than GDP.

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Definitions:

Net Working Capital

Networking capital represents a financial indicator that assesses the capacity of a business to settle its short-term debts using its short-term assets.

Capital Spending

Monies invested by an enterprise in obtaining or upgrading real assets, including estates, manufacturing facilities, or equipment.

Operating Cash Flow

The amount of cash generated by a company's regular business operations, indicating its ability to cover expenses, debt, and investments.

Shareholders' Equity

The net value of a company, calculated by subtracting total liabilities from total assets, which represents the owners' claim after debts have been settled.