If There Was an Increase in the Excise Tax on Beer

question 224

Multiple Choice

If there was an increase in the excise tax on beer, what would be the effect on the equilibrium price and quantity of beer?

• A) price increases, quantity decreases
• B) price decreases, quantity decreases
• C) price increases, quantity increases
• D) price decreases, quantity increases

Understand the reporting requirements for receivables and allowances for doubtful accounts in financial statements.

Identify the different types of receivables and understand their sources.

Describe the method to find the balance due from an individual customer.

Understand the concept and calculation of the carrying amount of accounts receivable.

---

Definitions:

Steel

A hard, strong alloy made primarily of iron and carbon, used extensively in construction and manufacturing.

Imports

Goods and services that are brought into a country from abroad for sale.

Price

The amount of money required to purchase a product or service.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a product or service and what they end up actually paying.