Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) General Knowledge Economy National Income Accounting
In the context of national income accounting, consider the following statements with reference to the inventory of a firm:
1. It includes the stock of unsold finished goods but doesn't include the raw materials which a firm may carry from one year to the next.
2. The rise in the value of inventories of a firm over a year is treated as investment expenditure undertaken by the firm.
Which of the statements given above is/are not correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2