The Tax Approach May Be Favorable Over a Direct Controls

question 133

Multiple Choice

The tax approach may be favorable over a direct controls approach to pollution cleanup because

• A)all firms face identical costs.
• B)large firms are the most likely to reduce their pollution and therefore, have the greatest impact.
• C)small firms are most likely to reduce their pollution since they are most efficient at it.
• D)firms that have the ability to reduce pollution at the lowest cost do so, while others do not.

---

Definitions:

Journal Entry

A record that represents a single financial transaction in the books of accounts.

Computerized Accounting System

Software used by companies to manage their financial transactions, records, and reports electronically.

Transactions Into QBO

The process of recording financial activities into the QuickBooks Online accounting software.

Onscreen Journal

A digital ledger or log used in accounting software to record financial transactions, accessible through a computer or mobile device interface.