Refer to the Above Figure

question 2

Multiple Choice

Refer to the above figure. Production at Point E

• A) would indicate that this economy is producing beyond its capabilities.
• B) would indicate production at a level below that which is attainable.
• C) is not attainable with given resources and technology.
• D) would demonstrate a total lack of technical expertise.

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Definitions:

Accrued Salaries

This refers to wages that have been earned by employees but have not yet been paid by the company.

Revenue Journal

A specialized accounting journal used to record the sales of goods and services and revenue generated.

Accounts Receivable

This term represents money owed to a business by its clients for goods or services delivered but not yet paid for.

Controlling Account

A general ledger account that summarizes the total amounts listed in a subsidiary ledger.