When a Factory Pollutes a River,the Costs and Losses That

question 35

Multiple Choice

When a factory pollutes a river,the costs and losses that affect people downstream would be called

• A)indirect costs.
• B)external costs.
• C)incidental costs.
• D)internal costs.
• E)social costs.

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Definitions:

Fair Value Accounting

A method of accounting that measures and reports certain assets and liabilities at their estimated market values at the time of the financial statement.

Mark-to-Market

An accounting method that values assets and liabilities based on current market prices.

Real Actions

Legal procedures taken to determine the title to property, as opposed to personal claims against a person.

Accounting Actions

Activities or tasks performed by accountants or financial officers that relate to the process of recording, summarizing, and reporting financial transactions of a business.