After Reviewing the Arguments and Counter Arguments for Spending Public

question 58

Multiple Choice

After reviewing the arguments and counter arguments for spending public money to subsidize stadiums and pro sport team owners,the author concludes that

• A)subsidies are justified if team owners are truly needy.
• B)public money is better spent on projects other than building a stadium.
• C)wealthy spectators deserve to have public money used to subsidize their leisure.
• D)major economic recessions would occur if subsidies were discontinued.

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Definitions:

Cash Discounts

These are deductions allowed by sellers on invoice amounts if the buyer pays promptly within a specified period, serving as an incentive for early payment.

Perpetual Inventory System

An inventory management method where records are continuously updated to reflect buys, sells, and stock levels in real-time.

Gross Method

An accounting practice where discounts for early payment are not considered until they are actually taken by the purchaser.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, including the repayment period, interest rate, and penalties for late payment.