An Externality Is an Example of

question 81

Multiple Choice

An externality is an example of

• A)a corrective tax.
• B)a tradable pollution permit.
• C)a market failure.
• D)Both a and b are correct.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for the end of an accounting period.

Account Balances

The amounts of money in a company's financial accounts at a specific point in time.

Unadjusted Trial Balance

A list of all accounts and their balances in a company's ledger before any adjusting entries are made.