Which of the Following Correctly Describes the External Benefit Resulting

question 133

Multiple Choice

Which of the following correctly describes the external benefit resulting from an individual's purchase of a winter flu shot?

• A) The flu shot is cheaper than the cost of treatment when you get the flu.
• B) The income of doctors increases when you get the flu shot.
• C) The flu shot reduces the likelihood others will catch the flu.
• D) The flu shot reduces the likelihood you will miss work as the result of sickness; therefore, you will earn more income.

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Definitions:

Note Payable

A written promissory note in which the borrower agrees to pay back the lender a certain amount of money at a future date or on demand.

Adjusting Entries

Entries made in the general journal at the close of an accounting period to update the ledger accounts for any income or expenses incurred but not yet recorded.

Condensed Worksheet

A simplified financial statement that consolidates and presents a company’s financial status in a concise format.

Accounting Cycle

The series of steps followed by an organization to track and manage financial transactions, from the initial transaction to the closing of the books.