Use the Following to Answer Questions

question 216

Multiple Choice

Use the following to answer questions :
Figure: Guns and Butter
-(Figure: Guns and Butter) Look at the figure Guns and Butter. On this figure, points A, B, E, and F:

• A)indicate combinations of guns and butter that society can produce using all of its factors efficiently.
• B)indicate increasing opportunity costs for guns but decreasing opportunity costs for butter.
• C)indicate that society wants butter more than it wants guns.
• D)indicate constant opportunity costs for guns and increasing costs for butter.

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Definitions:

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.

Unpaid Voucher File

A file or record keeping system that tracks invoices and vouchers that have not yet been paid by the company.

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.