--%>

Problem on National income

Providing reasons, describe the treatment assigned to the following which estimates national income.

(i) Family members working freely on farm owned by family.
(ii) The Payment of interest on borrowings through general government.

E

Expert

Verified

(i) Imputed salaries of such members will be comprised in national income.

(ii) This will not be comprised in national income since it is non-factor payment as the general government borrows just for consumption purpose.

   Related Questions in Financial Accounting

  • Q : Case study of a pharmaceutical group in

    The XYZ Group, a supplier of pharmaceutical equipment, systems and services, has its head office in London and primary production facilities in the US. The company also has a successful subsidiary in South Africa, which was established in 1990. XYZ South Africa does n

  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.

  • Q : Benefits for a company to cross-list

    Explain the benefits you can think of for a company to (a) cross-list its equity shares on more than one national exchange, and, (b) to source new equity capital from foreign investors as well as domestic investors.

  • Q : Advantage of Historical Cost in

    What is the advantage of Historical Cost in Decision Making?

  • Q : Link financial accounting and

    is there a link between financial accounting and programmed decision

  • Q : Calculating Dixons Retail plc in

    Q : Define the term Cash Define the term

    Define the term Cash in accountancy?

  • Q : Fictitious Assets Define the terms

    Define the terms Fictitious Assets?

  • Q : Type of bond instrument You are an

    You are an investment banker who is advising a Euro bank about the new international bond offer it is considering.  Proceeds are to be used to fund Eurodollar loans to the bank clients.  Specify the type of bond instrument you would recommend that bank shoul

  • Q : Problem on National income Providing

    Providing reasons, describe the treatment assigned to the following which estimates national income.(i) Family members working freely on farm owned by family.(ii) The Payment of interest on borrowings through general government.