Answer:
The cash payment is included in investing activity.
Explanation:
Items included in investing activity refers to assets that are used by the company, such as land, equipments and building.
A mortgage note payable is an example of a financing activity. Here the company has secured financing for it's acquisition by way of mortgage.
Answer:
The correct answer is B: decreased
Explanation:
Gross Domestic Product (GDP) is the sum of all the finished goods and services produced in a specific period, based on the market value of such items. The data sets are net of inflation, they are calculated adjusting for price changes.
The formula is as follow:
GDP = C + I + G + NX
GDP is the sum of consumer spending C, Investments I, Government spending G, and net exports NX.
<u>Inventory level itself is not part of GDP; however, changes in inventory does affect GDP by affecting investments. So if a corporation chooses to build up its inventory by amount X, it essentially makes an expenditure that increases I by X. Inventory will increase when a company produces more than what it sells.</u>
So a reduction in production affects I, reducing GDP.
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hope that helps!