The Term Externalities Refers to

question 42

Multiple Choice

The term externalities refers to

• A)regulations imposed on a firm by government.
• B)a nation that is a trading partner of another nation.
• C)the costs of production that are incurred by society.
• D)tariffs imposed on American goods exported to other countries.
• E)None of these answers is correct.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not relating directly to the entity's usual line of business.

Noncash Investing

Involves transactions that do not directly involve cash but affect the investing activities of a company; for example, acquiring assets through a trade or a note.

Financing Activity

Transactions related to a company’s financing efforts, including issuing debt, obtaining loans, or issuing shares of stock.

Cash Equivalent

Short-term, highly liquid investments that can be easily converted to a known amount of cash.