Answer:
A) give sellers the incentive to account for the external effects of their actions.
Explanation:
The effect of levying a tax that represents the cost of the externality could lead to one of two outcomes:
- Firms that are causing the externality add the cost of the externality in the final price of their products.
- Firms that are causing the externality attempt to reduce or eliminate the externality, so that prices remain the same, and competitiveness is not lost.
For example, the most common example of an externality is pollution, therefore, the industrial sector operates in a market characterized by negative externalities. If the government levied a tax on factories accounting for the pollution they produce, these factores either would increase prices, or try to reduce pollution.
It is a want because you don’t need them and also not part of savings
Answer:
a. cash received from sale of land, $200,000.
Explanation:
A statement of cash flows can be described as a financial statement that provides the summary of the amount of cash and cash equivalents that a company receives or pays during a particular period.
A cash flow statement presents how cash and cash equivalents are affected by changes in income and balance sheet accounts by breaking the analysis down to operating, investing, and financing activities.
As it can be seen above, investing activities is one of the three categories of activities that are reported in a statement of cash flows. Investing activities under the statement of cash flows therefore deals with the payments or receipts of cash and cash equivalents for the purchase and sale of long-term assets and other business investments during a particular period.
From the question, the only cash and cash equivalents transaction is the selling of land for $200,000 cash. Therefore, items in the Investing Activities section of the statement of cash flows should include cash received from sale of land, $200,000. The correct option is therefore a. cash received from sale of land, $200,000.
Answer:
C) As an asset, which will later be reduced as the pesticides are used.
Explanation:
The pesticides were bought because there was a discount, and the company has paid in cash but the pesticides won't be used for now, so it will be recorded as prepaid asset (Current Asset) which will liquidate in a year.