Which of the Following Is True of Environmental Degradation

question 3

Multiple Choice

Which of the following is true of environmental degradation?
(i) it is a common resource problem
(ii) it can be remedied through Pigovian taxes
(iii) it is a form of market failure
(iv) it is always best resolved by direct regulation

• A)(i), (ii) and (iii)
• B)(i) and (ii)
• C)(i) and (iii)
• D)(i), (iii) and (iv)

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Definitions:

Accrual Accounting

An accounting method that recognizes revenue and expenses when they are incurred, not necessarily when cash is exchanged, enhancing the accuracy of financial statements.

Financial Statements

Formal records of the financial activities and position of a business, organization, or person, including balance sheets, income statements, and cash flow statements.

Adjusting Entries

Journal entries made in accounting to update the accounts and bring them to their correct balances before the preparation of financial statements.

Period End

The conclusion of a specific accounting period, at which point financial statements are prepared.