Please explain 11th point using an example Also is issue of shares for purchase of Machinery included in the - Economics - National Income Accounting

Question

Please explain 11th point using an example
Also is issue of shares for purchase of Machinery included in
the National Income?????

11

Items not included in national income
Reason

Inter-firm payments like payment of interest or dividend from
one firm to another
It has already been included in the profit of the firm which
makes the payment of interest/dividend to the other firm

Vaishali Nebhwani · Accepted Answer

Dear student,

Payment of interest and dividend from one firm to another is not
part of national income as when one firm makes interest or dividend
payment they consider the same in their income/ profit therefore
the firm (which is getting/ receiving interest/ dividend ) is not
liable to take the same in their profit

Issue of share from machinery purchase is not included in national
income

Regards

Items not included in national income	Reason
Inter-firm payments like payment of interest or dividend from one firm to another	It has already been included in the profit of the firm which makes the payment of interest/dividend to the other firm.