Answer:
U.S. Tax Burden on Cola:
The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Explanation:
The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).
This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.
"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.
Answer:
b) increase; fall; rises
Explanation:
Federal budget comes from tax revenues and was drained by transfer payments.
In a recession, firms go out of businesses and people don't spend much. There will be less tax on goods and firms' profits. On the other hand, more people become unemployed and become entitled to receiving transfer payments.
A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for prospectively in the current and future periods.
The rules and regulations that businesses and other organizations must abide by when reporting financial data are known as accounting principles. These regulations standardize the terminology and procedures that accountants must employ, making it simpler to analyze financial data.
A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB).
The consistency that accounting principles establish enables more accurate and effective viewing of financial statements and reporting for businesses.
Learn more about accounting principles here
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Answer:
<u>Favourable Changes:</u>
Sales
Gross Profit
Operating Income
Interest Expense
Net Income
<u>Unfavourable Changes:</u>
Cost Of Sales
Selling Expenses
General Expenses
Other Revenue
Income Taxes
Explanation:
Observe Movement from 2018 results to 2019 results
Erie Corp
Vertical Analysis of Income Statement
2019 2018
Sales 1,397 1,122
Less Cost Of Sales 935 814
Gross Profit 462 308
<u>Less Operating Expenses</u>
Selling Expenses 154 121
General Expenses 88 77
Operating Income 220 110
<u>Less Non- Operating Expenses</u>
Other Revenue 4 7
Interest Expense 2 9
Income Taxes 134 66
Net Income 88 42
The answer to this is 1000
