![n 1 Catagorize the following items as a final good, an intermediate good or neither. Shares of Nike stock [a] Flour purchased](http://img.homeworklib.com/questions/3eebfc90-792a-11ea-a444-19e16456c3ce.png?x-oss-process=image/resize,w_560)
Homework Answers
Question 1
(a)
Shares of Nike stock
Shares and debentures are financial instruments and are not any good or service that can satisfy wants of any consumer or can be used in production of any final good.
Thus,
This item is neither.
(b)
Flour purchased by your local pizza to make dough.
When a good is used as input in production of a final good then it is referred to as intermediate good.
Flour is being used to make dough. So, it is intermediate good.
Thus,
This item is intermediate good.
(c)
A second hand shirt purchased at a thrift store.
The shirt is purchased for final consumption purpose.
Thus,
This item is a final good.
(d)
An orange
An orange can be consumed directly to satisfy a want.
A good that can be directly consumed without being converted in to any other good is termed as final good.
Thus,
This item is a final good.
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n 1 Catagorize the following items as a final good, an intermediate good or neither. Shares...
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1. prepare an unadjusted classified income statement
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