Use the Figure Below to Answer the Following Questions

question 40

Multiple Choice

Use the figure below to answer the following questions.

Figure 29.3.1
-Refer to Figure 29.3.1, which shows the outlays and revenues for the government of Pianoland. An automatic increase in tax revenues would be shown as a

• A)movement from left to right along the revenues curve.
• B)movement from left to right along the outlays curve.
• C)shift upwards in the revenues curve.
• D)shift upwards in the the outlays curve.
• E)both A and C

---

Definitions:

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets until used.

Accrued Liabilities

Liabilities for expenses that have been incurred but have not yet been paid or recorded through a standard payment transaction.

Cash Payments

Transactions where payment is made using cash, as opposed to checks, credit cards, or electronic transfers.

Credit Sales

Transactions where the buyer is allowed to pay for goods or services at a later date, extending credit by the seller.