-Refer to the Above Diagram

question 34

Multiple Choice

-Refer to the above diagram.If the production possibilities curve for an economy is at AB but the economy is operating at point 4,the reasons are most likely to be because of:

• A) supply and environmental factors.
• B) demand and efficiency factors.
• C) labour inputs and labour productivity.
• D) technological progress.

---

Definitions:

Income Taxes Payable

The amount of income tax a company owes to the government but has not yet paid.

Cash Paid

The total amount of money that has been disbursed or paid out by an individual or organization.

Direct Method

A method of preparing a statement of cash flows that shows operating cash receipts and payments, making it more consistent with the objective of the statement of cash flows.

Cash Collections

The process of gathering all cash received during a period, including sales revenues and other income.