Every Economy Must Answer Each of the Following Questions Except

question 32

Multiple Choice

Every economy must answer each of the following questions except one.Which is the exception?

• A)Which goods will be produced?
• B)Why are these particular goods produced?
• C)Which resources should be used?
• D)How should resources be combined to produce each product?
• E)Who will actually consume the goods produced?

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Definitions:

Accounts Receivable

This refers to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Contra Expense Account

An account that is offset against an expense account on the income statement, effectively reducing the total expense reported.

Expense Account

A ledger account that records transactions related to costs incurred by a business in the process of earning revenue.

Adjusting Entry

An accounting record made at the close of an accounting period that assigns income and expenses to the correct period.