Select the Income Statement Account(s)that Would Be Affected by a Policy

question 33

Multiple Choice

Select the income statement account(s) that would be affected by a policy choice at the same time as the inventory balance sheet account.

• A) Bad debts expense
• B) Cost of goods sold expense
• C) Depreciation or amortisation expense
• D) Various expense accounts

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Definitions:

Excess Burden

Excess Burden, also known as deadweight loss, refers to the cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Consumers

Individuals or entities that purchase goods and services for personal use.

Widgets

A generic term for any hypothetical manufactured good used in economics or consumer studies.

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacturing or resale.