Exhibit 30-1 -Refer to Exhibit 30-1. If the Importing Country Imposes a Country

question 6

Multiple Choice

Exhibit 30-1
-Refer to Exhibit 30-1. If the importing country imposes a tariff of $2 per unit, consumers will pay ____ percent of the tax, and producers will pay ____ percent.

• A)75; 25
• B)60; 40
• C)25; 75
• D)50; 50
• E)40; 60

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Definitions:

Notes Receivables

Written promises for amounts to be received, typically including interest, indicating that another party owes the business money.

Contra Asset Account

An account offset against an asset account on the balance sheet.

Allowance for Doubtful Accounts

An accounting provision that represents a company's estimate of invoices that will not be paid by customers.

Aging of Accounts Receivable

A method of categorizing accounts receivable based on how long they have been outstanding.