Externalities, in reference to a particular good, are most likely to impact:
A. sellers.
B. buyers.
C. Someone other than buyers and sellers.
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Land is best characterized as:
A. Having perfectly inelastic supply.
Being a nonrenewable natural resource.
C. Being priced according to the Hotelling principle.
Which of the following statements is most accurate regarding cash flow ratios？
A. Interest coverage ratio is calculated as operating cash flow over interest payments.
B. Debt payment ratio measures the firms ability to pay debts with operating cash flows.
C. Reinvestment ratio measures the firms ability to acquire assets with investing cash flows.
Generational accounting indicates the United States, as well as other developed nations, faces severe generational imbalances regarding government programs such as Social Security. Which of the follow
A. Reduction in income taxes.
B. Increase in government discretionary spending.
Creation of new money to pay government obligations.
A company reports its interest payments on long-term debt as a financing activity under IFRS. If the company reports under U.S. GAAP, the most likely effect would be:
An increase in cash flow from operations.
B. A decrease in cash flow from investing activities.
C. An increase in cash flow from financing activities.
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