Which of the Following Defines an Environmental Charge

question 70

Multiple Choice

Which of the following defines an environmental charge?

• A) a tax on output designed to charge for the adverse effects of production on the environment
• B) charges for using natural resources or for using the environment as a dump for waste
• C) the use of law to charge companies for failure to comply
• D) a pollution control that requires firms' emissions to reflect the levels that could be achieved from using the best available pollution control technology

---

Definitions:

Income Statement

A financial statement that shows a company's financial performance over a specific period, detailing revenues, expenses, and net income.

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained rather than being paid out as dividends to shareholders, often reinvested in the business or used to pay off debt.

Notes Payable

A financial liability representing a written promise to pay a specific sum of money on a specified future date.