Regulations That Impose Significant Costs but Do Not Provide the Funds

question 52

Multiple Choice

Regulations that impose significant costs but do not provide the funds to pay these costs are called:

• A) economic inducements.
• B) unfunded mandates.
• C) economic stimulators.
• D) hidden benefits.

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Definitions:

Long-Term Credit Sales

Sales made on credit with repayment terms extending beyond the normal operating cycle or one year.

Notes Receivable

Financial assets representing amounts owed to a company by customers or others, typically from sales or loans, that are expected to be paid.

Interest Income

Revenue generated from lending money or depositing funds in interest-bearing accounts.

Accounts Receivables Growth

An increase in the amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.