Capture Theory Is

question 115

Multiple Choice

Capture theory is

• A) an economic theory of regulation.
• B) a model about perfect competition.
• C) the same as the public interest theory.
• D) the theory that regulators capture firms' attention by dictating a very low price.
• E) a theory that explains behavior of competitive firms.

---

Definitions:

Interest Expense

The amount an entity pays over time for the use of borrowed funds.

General Journal Entry

A general journal entry is a record of financial transactions in the accounting records of a business.

Notes Payable

This refers to a written promise to pay a certain amount of money, usually including interest, by a specific date, and is recognized as a liability on a company's balance sheet.

Effective Interest Method

An accounting practice used to allocate loan or bond interest expense over the life of the loan or bond based on the loan's amortized cost.