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3 years ago

The united states has a regressive tax system. a. True b. False

Business

2 answers:

777dan777 [17]3 years ago

7 0

I think false is the answer

IRINA_888 [86]3 years ago

4 0

Answer:

The correct answer is option B. False.

Explanation:

The United States has a progressive tax system.

This means that the percentage we must pay to the treasury (tax rate) increases while the amount of a taxable transaction, which includes a tax called VAT, also increases.

That is, in The United States as you make more transactions that include VAT, you will have to pay more to the treasury.

While the regressive tax is quite the opposite, instead of applying a tax to those who have more income as in the previous case, those who have less income will end up paying more.

This does not mean that those who have less income will have a higher tax, but that everyone will receive the same tax equally, so if a person has low income and has to pay the same percentage as a person who has a lot of income, he will end up paying more.

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Classify each of the following in terms of their effect on interest rates (increase or decrease): I. Covenants on borrowing beco

kozerog [31]

Answer: I decreases; II decreases; III decreases

Explanation:

Debt Covenants becoming more restrictive means that less people want to borrow money. This shifts the demand curve to the left and this Decreases interest rates.

The Fed increasing money supply means that there is more money in the economy. This shifts the supply curve to the right thus having the effect of reducing Interests rates as there is more money available for loans.

Total Household Wealth increasing means that Households have less of an incentive to borrow money. This reduces the demand for interest rates so interest rates decrease.

5 0

3 years ago

ankoles [38]

Answer:

Stocks is the type of investments that offers both capital gains and interest income.

4 0

3 years ago

Assume that Beaver uses the periodic system, and the end of period ending inventory for January is 110 units. a. Prepare all nec

aleksandr82 [10.1K]

Answer:

Part 1 a

jan 4

Debit ; Accounts Receivable (80 x $8.00) $640

Credit : Revenue $640

jan 11

Debit ; Purchases (150 x $6) $900

Credit : Accounts Payable $900

jan 13

Debit ; Accounts Receivable (120 x $8.75) $1,050

Credit : Revenue $1,050

jan 20

Debit ; Purchases (160 x $7) $1,120

Credit : Accounts Payable $1,120

jan 27

Debit ; Accounts Receivable (100 x $9.00) $900

Credit : Revenue $900

jan 31

Debit ; Cost of Sales (100 x $5 + 150 x $6 + 160 x $7) $2,520

Credit : Inventory $2,520

Part 1 b

Gross Profit = Sales - Cost of Sales

Sales = ( 80 x $8.00 + 120 x $8.75 + 100 x $9.00) = $2,590

Cost of Sales = (100 x $5 + 150 x $6 + 160 x $7) = $2,520

Therefore,

Gross Profit = $2,590 - $2,520

= $70

Part 2 a

jan 4

Debit ; Accounts Receivable (80 x $8.00) $640

Debit : Cost of Sales (80 x $5.00) $400

Credit : Revenue (80 x $8.00) $640

Credit : Inventory (80 x $5.00) $400

jan 11

Debit ; Purchases (150 x $6) $900

Credit : Accounts Payable $900

jan 13

Debit ; Accounts Receivable (120 x $8.75) $1,050

Debit : Cost of Sales (20 x $5.00 + 100 x $6) $700

Credit : Revenue (120 x $8.75) $1,050

Credit : Inventory (20 x $5.00 + 100 x $6) $700

jan 20

Debit ; Purchases (160 x $7) $1,120

Credit : Accounts Payable $1,120

jan 27

Debit ; Accounts Receivable (100 x $9.00) $900

Debit : Cost of Sales (50 x $6.00 + 50 x $7) $650

Credit : Revenue (100 x $9.00) $900

Credit : Inventory (50 x $6.00 + 50 x $7) $650

Part 2 b

Gross Profit = Sales - Cost of Sales

Sales = ( 80 x $8.00 + 120 x $8.75 + 100 x $9.00) = $2,590

Cost of Sales = ($400 + $700 + $650) = $1,750

Therefore,

Gross Profit = $2,590 - $1,750

= $840

Explanation:

Hie, see the attached the full question as images below

Part 1

Note that the question in this part requires us to use the Periodic Inventory System. In Periodic Inventory system, Inventory Valuation and calculation of Cost of Goods Sold is done at the end of the Period, in this case at the end of the month of January.

Part 2

Again it is important to note that the question in this part requires us to use the Perpetual Inventory System. In Perpetual Inventory system, Inventory Valuation and calculation of Cost of Goods Sold is done at the after each and every transaction made.

Overall Comment

The Company use of FIFO should be considered in both the Periodic Inventory System in Part 1 and Perpetual Inventory System in Part 2. FIFO method assumes that the first goods received by the business will be the first ones to be delivered to the final customer.

That said, Cost of Sales for Part 1 are determined and recognized at the end of the period and Cost of Sales for Part 2 are determined and recognized after every sale transaction made

4 0

3 years ago

1. Describe several operational and behavioral benefits that are generally attributed to a participative budgetary process. 2. I

morpeh [17]

Answer:

Explanation:

1. Some of the operational and behavioral benefits that are generally attributed to a participatory budgeting process are as follows:

a) Utilization of the best knowledge of activities in a specific area, because the participants are close to daily operations.

b) Goals that are more realistic and acceptable.

c) Improved communication and group cohesiveness.

d) A sense of commitment and willingness to be held accountable for the budget.

2. Four deficiencies in Patricia Eklund’s participatory policy for planning and performance evaluation, along with recommendations of how the deficiencies can be corrected:

Deficiencies Recommendations The setting of constraints on fixed expenditures includes uncontrollable fixed costs, thereby mitigating the positive effects of participatory budgeting. Rewards should be based on meeting budget and/or organizational goals or objectives. The arbitrary revision of approved budgets defeats the participatory process. The contingency budget should be separate, over and above each department’s srcinal submission. The division manager holds back a percentage of each budget for discretionary use. Managers should be involved in the revision of budgets. Managers could submit a budget with programs at different levels of funding. Evaluation based on budget performance must be accompanied with intrinsic rewards. Divisional constraints could be at a budget "kick-off meeting;however individual limit of controllable expenses should be set by each manager

6 0

3 years ago

On January 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issued at face value. The bonds

Salsk061 [2.6K]

Answer:

Given that,

Value of bonds issued = $100,000

Maturity period = 10 years

Bonds were issued at face value.

Interest rate = 8%

Interest is paid once per year on December 31.

Since, the bonds are issued at the face value, so there would be no premium or discount on the issue of bonds.

The cash is received by the company for issuing bonds and it is debited. We know that bonds are a part of liabilities, so they are credited

Therefore, the journal entry is as follows:

Cash A/c Dr. $100,000

To bonds payable $100,000

(To record the issuance of bonds)

7 0

3 years ago