Incentives can be defined as mechanism by which we would like to increase the probability of a certain thing happening. Imagine you're incentivized to move to the outskirts of a city. A government can provide incentives in the form of subsidues where you would pay less for rent were you to move towards the outskirts of that city.
Living in the Back country<span>. settled land. In the early 1700s, it was the land between the Atlantic coastal region and the Appalachian Mountains.</span>
The statement that the information from a balance sheet is helpful, although it doesn't clearly show whether someone can cover their liabilities in the short term is True.
The balance sheet is a financial statement that shows the assets and liabilities that are owned by an entity at any point in time. The balance sheet is compared against past records.
It does not have the potential to clearly show us if a company can offset its liabilities because some other important markers that can be used to calculate this are not clearly indicated in the balance sheet.
So, the statement above is true.
Learn more about the balance sheet here:
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