Which of the Following Organizations Does Not Issue Rules That

question 31

Multiple Choice

Which of the following organizations does not issue rules that apply to accounting for income taxes?

• A) FASB
• B) SEC
• C) EITF
• D) IRS

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Definitions:

Natural Monopolies

Market conditions where a single firm can supply a good or service more efficiently than any competitor due to economies of scale, hence dominating the market.

Positive Feedback

Put simply, success breeds success, failure breeds failure; the effect is seen with goods that are subject to network externalities.

Marginal Social Benefits

The additional benefits to society as a whole from producing one more unit of a good or service.

Socially Optimal Level

The level of output or activity where the benefits to society are maximized, taking into account both private and external costs and benefits.