The Type of Regulation That Attempts to Keep Prices and the Rate

question 3

Multiple Choice

The type of regulation that attempts to keep prices and the rate of return in an industry at a competitive level is referred to as

• A) cost-of-service regulation.
• B) rate-of-return regulation.
• C) service-opportunity regulation.
• D) natural regulation.

---

Definitions:

Cost Constraint

The Cost Constraint principle in accounting refers to the idea that the value of the information provided by financial reports should outweigh the cost of providing it.

Going Concern

The assumption that an entity will continue its operations in the foreseeable future and not go bankrupt or be forced to stop operations.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Fundamental Qualitative

This term is incomplete without referencing specific context, but it often relates to the essential qualitative characteristics that information must possess to be useful in decision making, such as relevance and faithful representation.