Which of the Following Exemplifies the Polluter Pays Principle

question 85

Multiple Choice

Which of the following exemplifies the polluter pays principle?

• A) an oil company being required to pay $125 million to the federal government to clean up after a spill of 300,000 barrels of crude oil
• B) Sandra paying a $12 eco fee when she purchases her new laptop
• C) a builder being charged $100 at the landfill site to dispose of extraneous building material
• D) Joshua being fined $55 for throwing his fast-food garbage out the car window

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Definitions:

Allowance for Doubtful Accounts

An accounting provision made for accounts receivable that may not be collectable.

Accounts Receivable

Funds that a company's clients have not yet paid for products or services that have already been provided to them.

Allowance Method

An accounting technique that estimates and sets aside a portion of a company's receivables as uncollectable, acknowledging potential credit losses.

Uncollectible Account Receivable

An uncollectible account receivable is a debt owed to a company that it is unable to collect, typically leading to its classification as a bad debt expense.