Which of the Following Is True About Privatization of State-Owned

question 40

Multiple Choice

Which of the following is true about privatization of state-owned enterprises?

• A) It results in a drain on national budgets.
• B) It blocks investment of capital in strategic areas.
• C) It often leads to modernization.
• D) It results in a draining of the future national resources.
• E) It increases the number of state-owned enterprises.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid for, recognized in the accounting period they are incurred, not when they are paid.

Accounting Period

A specific period of time used for financial accounting purposes, during which financial statements are prepared.

Cash Payments

Outflows of cash from a company to settle obligations or purchase goods and services.

Prepaid Insurance

An asset account that represents the amount paid for insurance contracts in advance for future coverage.