A Method of Forcing a Company to Internalize the Total

question 283

Multiple Choice

A method of forcing a company to internalize the total cost of production is

• A) to impose a tax on the company to reduce production.
• B) to provide a subsidy to encourage production.
• C) for government not to interfere in the company's activities.
• D) to force the company to reduce the wages it pays to its employees.

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Definitions:

Single-Step Approach

A simple method of presenting an income statement where all revenues are summed in a single step before subtracting all expenses to find the net income.

Multiple-Step Approach

An income statement preparation method that highlights several steps or stages in determining net income, including operating and non-operating sections.

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards that provide guidelines for financial reporting globally.

Income from Operations

Earnings generated from a company's regular, core business activities, excluding non-operational income and expenses.