1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pav-90 [236]
3 years ago
13

Many critics have argued that a sales or consumption tax should be eliminated because of its regressive nature. what is the basi

s of this argument?
Business
2 answers:
ladessa [460]3 years ago
6 0

Because percentage of income use for consumption tends to fall/reduced as income of that person rises.

For examples, let's say that Person A earn $10 a year and person B earn $ 100 year. When both person A and person B decided to buy a bread, both would be subjected to a consumption tax of $ 1.

Many experts say this as regressive because the impact of consumption tax actually would be harsher for people in lower income. From the example above the consumption tax took 10% of the person A's income while it only take 1% of person B's income.

ivolga24 [154]3 years ago
5 0
The basis for this argument is that consumption tax takes a larger percentage of income from low income earners than from high income earners. This is because consumption tax is uniformly applied to all people irrespective of their situation.<span />
You might be interested in
The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost
pogonyaev

Answer:

$7million understated

Explanation:

Based on the information given the effect on 20x8 COST OF GOODS SOLD will be UNDERSTATED by $7 million reasons been that since the OPENING INVENTORY IS UNDERSTATED by $7 million which means that the COST OF GOODS SOLD will as well be UNDERSTATED by the same amount based on the fact that opening inventory adds to Cost of goods sold.

8 0
3 years ago
Evans Ltd. is now considering the possibility of offering a lifetime membership option to its subscribers. Under this proposal,
Ahat [919]

Answer: $329.75

Explanation:

The one year subscription is $40 per year. It is estimated that the average age of current subscribers is 38 and they will leave on average to 78. This means that they will leave for,

= 78 - 38

= 40 years

Evans Ltd  average interest rate on long-term debt is 12% so this means that we can use that 12% as a discount rate for the cash-flow expected.

I have attached a Present Value Interest Factor of an Annuity table to this question. It helps calculate annuities faster.

The above can be treated as an annuity because the $40 is constant every year.

The present value of the $40 over 40 years can be calculated by,

= $40 * present value Interest Factor of an Annuity for 40 years at 12% (look at the table for where 40 years on the y axis intersects with 12% on the x axis)

= $40 * 8.2438 (this is the figure when it is not rounded off to 3 dp)

= $329.752

= $329.75

This shows that the lifetime flat fee of $480 is more profitable for Evans Ltd as opposed to the yearly subscription. They should therefore try to sell more of the lifetime contract with the flat fee.

3 0
3 years ago
If you deposited​ $100 now ​(nequals​0)and​ $200 two years from now ​(nequals​2)in a savings account that pays​ 10% annual​ inte
Natali5045456 [20]

Answer:

The correct answer is: "You would have $589 the end of year 10".

Explanation:

The logics of the statement remains in the amount of money remained after 10 years of savings with a 10% annual interest. This means that, after you deposit $100 now (nº 0), on the first current year you would have ended up with $110, although in the second year (nº 2) you would have made a deposit of $200, which means you would have made total earnings of $310, plus the annual interest of $31. After the second year, all subsequent ones wound count on with an annual interest of $31, which means that at end of year 10 you would have reached the amount of $589.

(ps: mark as brainliest, please?!)

7 0
3 years ago
Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock
Jlenok [28]

Answer:

(a) Decrease in accounts receivable

(g) Depreciation expense

Explanation:

Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.

It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted

Based on the above explanation, the items which are to be added in the operating activities are

(a) Decrease in account receivable

(g) depreciation expense

Out of all Other items would be deducted and all other items belong to investing and financing activity

8 0
3 years ago
Accounting professionals can perform various services that provide assurance about the and of information given by one party to
Burka [1]

Answer:

It is true

Explanation:

Chartered Accountants most especially external auditors are trained to provide assurance services that will give credit and reliability to the financial information being presented to the users by the directors.

Their services include statutory audit and other related assurance services.

The report produced by a Chartered Accountant (e.g External Auditor) gives reasonable assurance to the shareholders of the company or any other external users.

8 0
3 years ago
Other questions:
  • Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that t
    5·1 answer
  • Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships
    14·1 answer
  • Simon bought a computer and made monthly payments. By the end of the month, Simon had no money left for groceries. Which step in
    15·2 answers
  • Winter Company has no beginning and ending inventories, and reports the following data about its only product: Direct materials
    11·2 answers
  • Which one of the following is an example of a nondiversifiable risk?
    9·1 answer
  • Regarding a broker's commission, the California Business and Professions Code requires that in the sale of residential property
    15·1 answer
  • Shugart sells two products. Product A sells for $88 with variable costs of $38. Product B sells for $143 with variable costs of
    9·1 answer
  • The average cost of tuition and room and board at a small private liberal arts college is reported to be $8,500 per term, but a
    8·1 answer
  • Which of the following is/are required to report on business segments? I. Publicly-traded enterprises II. Not-for-profit enterpr
    14·1 answer
  • Max and mimi are using a method of birth control that requires mimi to carefully observe changes in the secretions from her cerv
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!