--%>

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 : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : What is the equivalent rate A bank

    A bank quotes an interest rate of 13.5% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?

  • Q : Standard costing is a separate system

    Wheather it is correct or not that standard costing is a separate system in accounting?

  • Q : Proceeds on disposal The following

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

  • Q : Payment method-Buy pound or investing

    When you have visited the London, you have purchased a Jaguar for £35,000, which is payable within the three months. Enough cash is there at your bank in the New York City that pays 0.35% of interest per month, compounding monthly, to pay for car. Presently, spo

  • Q : Challenges of friendships How is

    How is friendship differing from other relationships? Explain the challenges of friendships. What are the common expectations for friendships – give an illustration of each. Explain how friendships fluctuate ove

  • Q : What are Personal accounts What are

    What are Personal accounts. Describe their types?

  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

  • Q : Forward cross-rates in German terms

    Compute 30-, 90-, and 180-day forward cross exchange rates between German mark and Swiss franc by utilizing the most recent quotations.  Specify forward cross-rates in “German” terms.

  • Q : Define Intangible assets Intangible

    Intangible assets: It is the asset that is not visible however we can feel them. The main examples of these assets are goodwill, patent and trade marks.