The Free-Rider Problem Exists Because

question 31

Multiple Choice

The free-rider problem exists because

• A) some goods or services are rival and leave some people without them.
• B) some goods or services are excludable and cause envy for those who don't have them.
• C) people must all consume the same public good and so everyone wants to pay for it.
• D) private goods or services cause some people to want to take them for free.
• E) people cannot be excluded from consuming public goods even if they don't pay for them.

Identify and apply the requirements for measuring provisions and contingent liabilities.

Assess the treatment of warranties and onerous contracts under AASB 137.

Discern between the financial reporting treatment for recognized liabilities, provisions, and contingent liabilities.

Analyze the implications of future obligations and uncertain events on financial statements.

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