Which of the Following Observations Is True of Subsidies

question 91

Multiple Choice

Which of the following observations is true of subsidies?

• A)​They act as barriers to trade.
• B)​They reduce the amounts of actual labor, raw material, and capital costs of production.
• C)​They are capable of distorting trade patterns.
• D)​They reduce inefficiencies.

---

Definitions:

Employee Vacation Benefits

Employee vacation benefits refer to the paid time off provided to employees as part of their compensation package, allowing them time to rest and recharge.

Estimated Liabilities

Liabilities that are anticipated but not yet confirmed or quantified, often used in accounting for future expenses.

Estimated Bonuses

Anticipated bonus payments to employees based on performance criteria that have not yet been paid out.

Bonus Payable

A liability account on the balance sheet that represents the amount of bonuses a company owes to its employees but has not yet paid.