Which of the Following Events Cannot Be Quantified into Dollars

question 144

Multiple Choice

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

• A) The appointment of a new accounting firm to perform an audit.
• B) The purchase of a new computer.
• C) The sale of store equipment.
• D) Payment of income taxes.

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Definitions:

Deadweight Loss

A decline in economic effectiveness that happens when a good or service does not reach or cannot reach market equilibrium.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the goods' sensitivity to price changes.

Laffer Curve

A theory that illustrates the relationship between tax rates and the amount of tax revenue collected by governments.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is unattainable.