A Negative Externality

question 375

Multiple Choice

A negative externality

• A)is a cost to a bystander.
• B)is a cost to the buyer.
• C)is a cost to the seller.
• D)exists with all market transactions.

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Definitions:

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Accounts Payable is a liability account that tracks the amounts a company owes to suppliers or creditors for goods and services received but not yet paid for.

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Accounts Payable

Liabilities of a business that represent the company's obligation to pay off a short-term debt to its creditors or suppliers.