An Externality Is the Impact Of

question 21

Multiple Choice

An externality is the impact of:

• A)society's decisions on the well-being of society
• B)a person's actions on that person's well being
• C)society's decisions on the well-being of one person
• D)one person's actions on the wellbeing of a bystander

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Definitions:

Financing Activities

This category in cash flow statements includes transactions related to raising capital and repaying investors, such as issuing stock or paying dividends.

Cash Flows

The inflow and outflow of cash and cash equivalents, representing the operating, investing, and financing activities of an entity over a period.

Indirect Method

In finance, it refers to a cash flow statement approach that adjusts net income for the effects of transactions that do not involve cash, to calculate net cash flow from operating activities.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specified period of time.