Figure 8-12 -Refer to Figure 8-12.Suppose a $3 Per-Unit Tax Is Placed

question 208

Multiple Choice

Figure 8-12
-Refer to Figure 8-12.Suppose a $3 per-unit tax is placed on this good.The loss of consumer surplus resulting from this tax is

• A)$35.
• B)$45.
• C)$70.
• D)$80.

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Definitions:

Cash Over and Short

An account that records discrepancies between physical cash and recorded amounts due to errors or theft.

Journal Entry

A record of a financial transaction that includes the date of the transaction, the affected accounts, the amounts, and a brief description.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business to avoid writing checks.

Cash Over and Short

An accounting line item that indicates the discrepancies between the amount of cash in the register and the amount of cash according to the accounting records.