If the Construction of a New Elementary School Would Create

question 21

Multiple Choice

If the construction of a new elementary school would create $5 million worth of benefits for citizens and cost $7 million to construct, then using the criterion of economic efficiency, the school

• A) should be built.
• B) should not be built.
• C) results in a substantial improvement to the welfare of society.
• D) should be built if it passes by a majority vote.

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Definitions:

Account Group

An account group is a categorization of individual financial accounts in the general ledger that helps organize and report financial information.

Owner's Equity

The portion of a company’s assets that belongs to the owners after liabilities have been deducted.

Supplies

Items that are used in the daily operations of a business or organization, often consumed in the process.

Accounts Receivable

Receivables from customers for products or services rendered by a company, awaiting payment.