The Non-Exclusion Principle Means

question 128

Multiple Choice

The non-exclusion principle means

• A) no one can be excluded from the benefits of a public good, even if the person does not pay for it.
• B) no one can be excluded from the benefits of a private good, even if only one person pays for it.
• C) no one who pays for a public good can be excluded from receiving the benefits of a public good.
• D) people who do not pay for a public good can be excluded from receiving its benefits.

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Definitions:

Intangible Assets

Assets that do not have physical substance but provide economic benefits to the owner, such as patents, trademarks, and goodwill.

Income Recognition

The accounting principle that income should be recognized in the accounting period in which it is earned, irrespective of when the cash is received.

Initial Impairment Assessment

The first step in evaluating whether an asset's carrying amount exceeds its recoverable amount, indicating a potential impairment loss.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides economic benefits to the owner, such as patents, trademarks, and copyrights.