Disclosure Notes Would Not Include

question 73

Multiple Choice

Disclosure notes would not include:

• A) Depreciation methods used and estimated useful life.
• B) Definition of cash equivalents.
• C) Details of pension plans.
• D) Data to adjust the financial statements so that they are not misleading.

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Definitions:

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing the environmental externality costs of these emissions.

Optimal Tax

A tax designed to generate government revenue with the minimum economic distortion or welfare loss.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both the cost to the producer and the cost of any negative externalities associated with production.

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from producing one more unit of a good or service.