Use the Following to Answer Questions: Table: Pollution Abatement -(Table: Pollution Abatement) Refer to the Table

question 227

Multiple Choice

Use the following to answer questions: Table: Pollution Abatement $$\begin{array} { c c c } \hline \text { Firm } & \begin{array} { l } \text { Pollution Level } \\\text { (tons of } \mathrm { SO } _ { 2 } \text { ) }\end{array} & \begin{array} { l } \text { Cost of Removing One } \\\text { Ton of Pollution }\end{array} \\\hline \mathrm { A } & 30 & \$ 100 \\\mathrm {~B} & 30 & \$ 500 \\\hline\end{array}$$
-(Table: Pollution Abatement) Refer to the table. If the government requires each firm in the table to reduce pollution by 2 tons, what is the total cost of reducing 4 tons of pollution?

• A) $400
• B) $2,000
• C) $1,200
• D) $2,400

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Definitions:

Transactions On Account

Financial activities that are recorded on credit, affecting accounts payable or receivable without immediate cash exchange.

Equipment On Account

The acquisition of equipment that is recorded on credit, where payment is deferred to a later date.

Recording Process

The systematic documentation of a company's financial transactions in the appropriate accounts of its accounting system.

Debit Entries

Bookkeeping entries that increase assets or expenses, or decrease liabilities, equity, or income.