When a Specific Tariff Is Used Instead of an Ad

question 29

Multiple Choice

When a specific tariff is used instead of an ad valorem tariff:

• A)higher priced goods enjoy a greater degree of protection than cheaper goods
• B)domestic consumers are encouraged to purchase cheaper goods
• C)cheaper goods enjoy a greater degree of protection than higher priced goods
• D)domestic producers enjoy a greater degree of protection in periods of rising prices

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Definitions:

Accounting Principle

Fundamental concepts or guidelines that govern the field of accounting and instruct the recording and reporting of financial transactions.

Reporting Entity

An entity for which there are users who rely on its financial statements as a major source of financial information about the entity.

Retrospective Approach

An accounting method that applies a new policy or standard to transactions, events, and conditions as if the new policy or standard had always been in effect.

Accounting Change

An alteration in accounting principles, estimates, or reporting methodologies in the preparation and presentation of financial statements.