GPA accounting(10 points)

GDP - Gross Domestic Product, is the total value of goods and services of citizen within a country for a year. The stress / main idea is the VALUE, that all created value should be included in the calculation of GDP.

(a) You should answer NO.
Issuance of shares / debts should not be included in the calculation of GDP. The construction of a power plant (if construct domestically) should be included at the period of money spent, not the period of the source of fund.

(b) You should answer YES.
The importance is HIRING AN INVESTMENT BANK FOR FINANCIAL ADVICE that this hiring service is part of GDP because the investment bank provides services for financial advice. The action of TAKEOVER AND PURCHASE ALL ASSETS had no influence about considering this question.

GDP is the total value of final goods and services produced by all resident producing units in a country or territory within a period of time, usually one year.

a) The proceeds should be excluded in GDP accounting as there is no production. However, the value of constrution of power plant should be included as it is current production.

b) The value of service provided by the investment bank should be included in GDP accounting as it is a current production.