If Coal-Burning Electrical Utility Companies Fully Internalized Pollution Costs, Then

question 277

Multiple Choice

If coal-burning electrical utility companies fully internalized pollution costs, then we could expect

• A) an increase in electricity prices.
• B) a decrease in electricity prices.
• C) no change in electricity prices.
• D) a greater use of coal to produce electricity.

Learn the external reporting requirements for costing methods.

Understand the differences between accrual accounting and cash flow, and the impact on reported income.

Identify and classify activities as operating, investing, or financing in the context of cash flow statements.

Calculate dividends paid to shareholders based on changes in retained earnings and net income.