If It Is Impossible to Prevent Someone from Benefiting from a Good

question 113

Multiple Choice

If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is

• A) nonrival.
• B) rival.
• C) excludable.
• D) nonexcludable.

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Definitions:

Sales Tax Payable

A liability account in a company's financial statements, representing sales tax collected from customers but not yet remitted to the government.

Sale

The exchange of a product or service for money, constituting the main operational activity for most businesses.

Liability Account

An accounting record that holds the amounts owed by a company to creditors, suppliers, or lenders.

Terms

Conditions under which a sale is made, including payment timeframe, discounts, and penalties for late payment.