During September, the Bug-B-Gone Company buys and pays for a six-month supply of pesticides in order to receive a bulk discount. The company uses accrual basis accounting. The cost of the pesticides is recorded:
A. as a liability, which will later be reduced as the pesticides are used.
B. immediately as an expense.
C. as an asset, which will later be reduced as the pesticides are used.
D. partially as an expense and partially as a liability.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.