Figure 18-2 Figure 18-2 Shows the Widget Market Before and After an and After

question 27

Multiple Choice

Figure 18-2

Figure 18-2 shows the widget market before and after an excise tax is imposed. The revenue collected by the tax is ____.

• A)$8,000
• B)$50,000
• C)$100,000
• D)$150,000

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounts Receivable

This is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit terms.