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4 years ago

The following events result in a tax. Which is an example of a direct tax?

Business

1 answer:

Komok [63]4 years ago

5 0

Answer:

Javier owes money to the federal government based on his earnings.

Explanation:

Direct taxes are levied directly on the income of an individual or a business. Javier pays income tax on his earnings which is classified as a direct tax. Other examples of direct taxes include corporate tax and property tax.

All other options are examples of indirect tax as they are being levied on goods and services. Such taxes are usually included in the price. For e.g. General sales tax and value added tax.

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If Rajiv's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price f

Sonbull [250]

Answer:

b) False

Explanation:

The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own. This will in turn drive sales and the production quantity to increase marginally in the short-run. However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.

5 0

3 years ago

Typically, the firms' lowest cost source of financing is ____________ as its cost is tax deductible and it also tends to offer t

Finger [1]

Answer:

Debt

Explanation:

Debt is the lowest cost source of financing because the interest return given to holders of debt has a tax shield (tax deductible) that is provided by the Section 11j of the Income tax Act.

The other sources of finance give a return in form of dividends. Dividends are are not tax deductible hence they attract a huge cost.

6 0

3 years ago

Which of the following currencies is not/are not a hard currency?* Euro O CHF RMB O CDS GBP Both b and c Both c and d

cestrela7 [59]

Examples of some of the most prominent hard currencies are listed below: The U.S. dollar (USD) The euro (EUR) ... The Australian dollar (AUD)

6 0

3 years ago

The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4

Bezzdna [24]

Answer:

a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours

Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours

b. Journal Entries

S/N Account Titles Debit Credit

1 Inventory - Raw material $110,000

Account Payable $110,000

2 Work in process $32,500

Manufacturing overhead $7,500

Inventory - Raw materials $40,000

3 Work in process $52,500

Manufacturing overhead $11,000

Materials control $63,500

4 Manufacturing overhead $17,250

Leasehold payable $16,250

Utilities payable $1,000

5. WIP Control (14,375*800) $11,500

Manufacturing overhead allocation $11,500

c. Particulars Dep 100 Dep 200 Total

Direct materials $32,500 $13,500 $46,000

Direct labour $52,500 $13,500 $106,000

Manufacturing overhead $35,750 $18,750 $54,500

(11,000+7,500+16,250+1,000

+9,000+4,750+3,750+1,250)

Total Cost of Job A $120,750 $85,750 $206,500

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3 years ago

Expensive department stores market service and atmosphere while less expensive stores market location and perceived lower prices

melisa1 [442]

Answer: Monopolistic competition

Explanation:

Monopolistic competition is described as a competition between firms where they offer similar services but not the same or exact services. This competition is seen in industries where differentiation is possible, example of such industries are restaurant, hairdressers, clothing, TV programs.

7 0

3 years ago