External Costs Are

question 30

Multiple Choice

External costs are

• A) borne by individuals other than those who incurred them.
• B) another term for implicit costs.
• C) borne by the public but incurred by the government.
• D) borne by the government but incurred by the public.

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Definitions:

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable which may not be collectible.

Specific Receivable

A receivable account that is clearly identified and attributed to a specific source, such as an individual customer or entity.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenue.

Maturity Date

The predetermined date on which a financial instrument, such as a loan or bond, is due to be repaid in full.