When External Benefits Exist, Which of the Following Can Produce

question 52

Multiple Choice

When external benefits exist, which of the following can produce the efficient amount of output? I. vouchers
II) private subsidies
III) taxes
IV) marketable permits

• A) I and II only
• B) I and III only
• C) II and IV only
• D) III and IV only

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Definitions:

Accounting Cycle

Set of activities involved in converting information and individual transactions into financial statements.

Accountants

Professionals who perform financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.

Cash Flow Method

An accounting technique that tracks the movement of cash in and out of a business, crucial for understanding its liquidity.