What Is an Externality

question 118

Multiple Choice

What is an externality?

• A)A benefit realised by the purchaser of a good or service.
• B)A cost paid for by the producer of a good or service.
• C)A benefit or cost experienced by someone who is not a producer or consumer of a good or service.
• D)Anything that is external or not relevant to the production of a good or service.

Distinguish between operating, investing, and financing activities in the context of the statement of cash flows.

Identify errors in computing cash flows from financing and investing activities using the indirect method.

Analyze the effect of changes in current assets and liabilities on cash from operating activities.

Compute net cash flow from operating activities using the indirect method with provided financial data.

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Definitions:

Tax

A compulsory financial charge or other levy imposed on an individual or a legal entity by a governmental organization.

Chronic Effect

A long-term health consequence that arises after prolonged or repeated exposure to a hazardous substance or environmental condition.

Liver Damage

Liver damage refers to the impairment or deterioration of liver function, often resulting from factors like alcohol abuse, infection, or exposure to toxins.

Alcohol Abuse

The excessive and harmful consumption of alcohol, leading to physical and psychological damage.