Answer:
A
Explanation:
A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.
Sales tax is an example of a regressive tax.
If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax. the sales tax is worth $2.5.
The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.
It can be seen that worker A who earns less income is taxed higher
Cash flows is the most relevant variable to measure the returns on debt instruments, while GAAP net income is the most relevant variable to measure the returns on common stock.
a) true
b) false
Answer:
b) false
Explanation:
Cash flow determines the cash position of the company whether the company is able to pay the obligations or not. It could be determined by analyzing the inflows of cash and outflows of cash
While on the other hand GAAP is the accounting principle that is compuslory for each and every organization to follow it
Therefore the given statement is false
Which of the following statements accurately describe the phases of a business cycle?
A. A contraction phase is when an economy exhibits decreasing levels of production and consumption.
B. A period of expansion is when an economy exhibits decreasing levels of production and spending.
C. A trough occurs at the end of the contraction phase and the beginning of the expansion phase
D. A peak level of business activity occurs at the end of the expansion phase and the beginning of the contraction phase.
Answer:
Option A
Explanation:
In simple words, contraction relates to a period of the market cycle throughout which the market is in recession as a group When the economic cycle rises, a recession usually occurs, just before it reaches a trough. A contraction is triggered by three kinds of occurrences. We are talking of a sharp spike in borrowing rates a banking crash, or uncontrolled inflation . Paranoia and anxiety replace assurance.
Wages have risen in Europe since the 1970s and workers work substantially less than they did 40 years ago. Does this suggest that income effects or substitution effects dominate?
a. Income effect
b. Substitution effect
Answer:
The correct answer is A. Income effect .
Explanation:
In consumer theory, the income effect is the change in consumption that is due to a change in the consumer's real income, that is, his or her purchasing power. Thus, the fact that wages have increased notably, while working time has been reduced during the same period of time, is a clear sign that the working hour of each man within the productive circuit has today in day a purchasing power much higher than what it had in the past.
Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawals; revenues; expenses).
Inventory
Retained Earnings
Dividends
Cost of Goods Sold
Utilities Payable
Service Revenue
Accounts Payable
Rent Expense
Answer and Explanation:
The classification is as follows;
Inventory = current assets
Retained Earnings = stockholder equity
Dividends = dividend
Cost of Goods Sold = expense
Utilities Payable = current liabilities
Service Revenue = revenue
Accounts Payable = current liabilities
Rent Expense = expense
In this way it could be classified and the same is relevant
QUESTION 10 of 10: Your business owns an old truck. Liability insurance is required; collision is optional. Collision insurance costs $500 per year. The old truck has a value of $750. You think the likelihood of having a serious collision in a year is about 10%. Should you get the collision insurance? O a) Yes Ob) No
the answer for this question is No
hope this helps
Answer:
no
Explanation:
I had this one.
What is the mental and physical effort made by humans for the production of goods and services?
Labor
Capital
Land
Entrepreneurship
13.) An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 6% yields, what yield must municipals offer for the investor to prefer them to corporate bonds
Answer:
the yield that must offer for the investor in order to prefer them is 4.2%
Explanation:
The computation is shown below:
The after tax yield is
= Corporate bond yield × (1 - tax rate)
= 6% × (1 - 0.30)
= 6% × 0.70
= 4.2%
hence, the yield that must offer for the investor in order to prefer them is 4.2%
The same is relevant