Refer to the Information Provided in Figure 4

question 35

Multiple Choice

Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5
-Refer to Figure 4.5. Assume that initially there is free trade. If the United States then imposes a $10.00 tax per CD-Rom drive on imported CD-Rom drives,

• A) the quantity of CD-Rom drives demanded will be reduced by 6 million.
• B) the quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million.
• C) the price of CD-Rom drives in the United States will decrease to $5.
• D) U.S. imports of CD-Rom drives will increase by 3 million.

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Definitions:

Voucher System

An internal control mechanism in accounting, where documents (vouchers) are prepared for every transaction involving the payment of cash or transfer of funds.

Documentation

Written or electronic records that provide evidence of transactions, processes, or agreements.

Verification

The process of ensuring the accuracy and validity of data or documents.

Bank Reconciliation

A process that explains the difference between the bank balance shown in a company's bank statement and its financial records.