_____ Is(are)often Placed on Items and Activities with Which People

question 28

Multiple Choice

_____ is(are) often placed on items and activities with which people may harm themselves,those around them,or the general environment.

• A)Negative externalities
• B)Mala prohibita
• C)Judicial review
• D)Excise tax

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow, on a collateralized basis, funds necessary to lease an asset over a similar term.

Discount Rate

The interest rate used to discount future cash flows to their present value, important in investment analysis and valuation.

Finance Lease

A type of lease agreement where the lessee assumes substantially all the risks and rewards of ownership of the asset.

IFRS

International Financial Reporting Standards, which are international accounting guidelines for preparing financial statements.