Use the Following Diagram to Answer the Following Questions

question 46

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Consumption Goods. Production at which of the above points would result in the greatest long-term growth in GDP?

• A) A.
• B) B.
• C) C.
• D) D.

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Definitions:

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Accounting

The systematic process of recording, measuring, and communicating financial information to help in decision-making.

Supplies Used

The amount of supplies consumed during a specific period, which may be accounted for as an expense.