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An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller.
Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
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Explain why an economy income must equal it's expenditure?
An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
Is it true for an economy as a whole. income equals expenditure because the income of the seller must be equal to the expenditure of the buyer?
Yes
Why an economy's income must equal to it's expenditure?
For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller.
Why the expenditure and factor income approaches for measuring GDP yield the same results?
Because what goes in must come out.....
Why an economy's income must be equal to its output?
Because output generates income.
Explain why an economy income must equal it's expenditure?
An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
Is it true for an economy as a whole. income equals expenditure because the income of the seller must be equal to the expenditure of the buyer?
Yes
Why an economy's income must equal to it's expenditure?
For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller.
Why aggregate income is equal to aggregate expenditure?
One man's income is another man's expenditure. The expenditure of buyers on products is, by the rule of accounting, income to the sellers of those products. Every transaction that affects income must affect expenditure. If, for example, a company produces and sells one extra loaf of bread. This transaction will raise total expenditure on bread, but it also has an equal effect on income. If the company produces the extra loaf without hiring any more labour (such as making the production process more efficient), then profit increases. If the company produces the loaf by hiring more labour, then wages increase. In both cases, expenditure and income increase equally.
Why the expenditure and factor income approaches for measuring GDP yield the same results?
Because what goes in must come out.....
Why an economy's income must be equal to its output?
Because output generates income.
What best describes budgeting?
It is a process by which expenditure - including allowances for unforseen situations - is made to be less than, or equal to, the expected income. This inequality need not be satisfied in each time period but must be satisfied over the time period in question.
Why an economy's income must equal its expenditures?
Because every dollar of spending by a buyer is a dollar of income for a seller
What is the format for capital expenditure?
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
What is the format for capital expenditure budget?
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
What is an expenditure must not be prohibited by law?
no
Why depreciation is an application of accruals concept?
The accruals concept states that the income for the year must be matched against the expenditure. Depreciation is the reduction in value of an asset with the passage of time, due to particular wear and tear.(Answer to the question)- Depreciating the asset is an expenditure for the business. This should be matched with the income it generates (say for example - delivery vehicles used for the transport of goods) to get a true and fair profit in the Income Statement.
