A Viable Government Solution to an External Cost Is A

question 182

Multiple Choice

A viable government solution to an external cost is a:

• A) tax on the party producing the cost.
• B) subsidy to the party producing the cost.
• C) tax on the party incurring the cost.
• D) subsidy to the party incurring the cost.

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Definitions:

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.

Petty Cash Fund

A nominal sum of cash reserved for quick payments of assorted trivial expenses.

Replenishing

Refers to the process of adding stock or supplies to bring quantities back up to predetermined levels.

Debit To Cash

An accounting entry that increases the cash balance in a company's books, reflecting an influx of money.