A Cost Not Borne by the Producer but Borne by Other

question 128

Multiple Choice

A cost not borne by the producer but borne by other people is known as ________ cost.

• A) a marginal
• B) an internal
• C) an external
• D) a nonessential
• E) a subsidized

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Definitions:

Acid-Test Ratio

A liquidity ratio, also known as the quick ratio, that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable).

Stockholders' Equity

The remaining value of a corporation's assets once liabilities are subtracted, which signifies the share of ownership held by the shareholders.

Prepaid Expenses

Expenses paid for in advance and recorded as assets before they are used or consumed.

Acid-Test Ratio

The acid-test ratio, also known as the quick ratio, measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.