In the Case of a Beneficial Externality

question 100

Multiple Choice

In the case of a beneficial externality

• A)marginal private cost is below marginal social cost.
• B)marginal social cost is above marginal private cost.
• C)marginal social cost and marginal private cost are equal.
• D)the free market price is below the socially efficient price.

Identify the parties involved in a check and understand the check's role in banking transactions.

Calculate and interpret the days' sales uncollected ratio to evaluate the liquidity of receivables.

Understand the need for and process of bank account reconciliation.

Recognize the documentation involved in cash disbursements and receipts, including invoices, purchase requisitions, and vouchers.

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Definitions:

Journal Entry

A record in the financial ledgers of a company reflecting a business transaction, involving a debit and credit in accordance to double-entry bookkeeping.

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based in the United States.

Payroll Records

Documentation related to employees’ pay, including details of salaries, wages, bonuses, deductions, and taxes, maintained by an employer.

Journal Entry

An accounting entry documenting the specifics of a financial deal.