Which of the Following Is Not a Negative Consequence of Regulating

question 43

Multiple Choice

Which of the following is not a negative consequence of regulating accounting?

• A)A wealth transfer from non-users to users of accounting information.
• B)The imposition of disclosure costs on the users of financial information.
• C)A potential overallocation of social resources to the production of free, publicly available accounting information.
• D)Benefits are received by the users of free accounting information while non-users implicitly incur the production costs.

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Definitions:

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger people with disabilities.

FUTA

FUTA (Federal Unemployment Tax Act) is a United States federal law that imposes a payroll tax on any business with employees, the funds are used to pay unemployment benefits.

SUTA

State Unemployment Tax Act, referring to state-level taxes that employers must pay towards state unemployment insurance programs.

Overtime Rate

The rate of pay for work performed beyond the normal working hours, typically higher than the regular pay rate.