Answer:
C. The ability-to-pay principle.
Explanation:
According to my research on different tax methods, I can say that based on the information provided within the question this tax follows the ability-to-pay principle. This principle states that taxes should be levied according to a taxpayer's ability to pay. Since the tax in this situation is being placed on liquor, which is not a necessity, then it can be said that the buyer has the ability to pay the tax.
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Answer:
In an open economy, the supply curve for dollars in the foreing-currency exhange market is vertical, because the supply does not depend on the exchange currency rate.
The supply of dollars in an open economy depends on the interest rate, which is determined by the difference between imports and exports (which is the same as the difference between purchases and sales of foreign capital).
Answer:
Production
Explanation:
Production turns inputs such as raw materials, human resources into outputs.
Answer:
$133,000 decrease
Explanation:
The computation of the impact on the operating income is shown below:
Sales for the year $1,052,000
Less:
Variable cost -$862,000
Contribution margin $190,000
Less:
Fixed cost for 30% of $190,000 -$57,000
Impact on the operating income $133,000
This amount reflects the decrease in the operating income
Answer:
1. Transaction will have effects on Balance Sheet in the Assets Section and will be classified as an Investing Activity in the Statement of Cash flows.
2. Transaction will have effects on Balance Sheet in the Liability Section and will be classified as a Financing Activity in the Statement of Cash flows.
3. Transaction will have effects on Income Statement in the Revenue Section and will be classified as an Operating Activity in the Statement of Cash flows.
4. Transaction will have effects on Income Statement in the Revenue Section and will be classified as an Operating Activity of the Statement of Cash flows.
5. Transaction will have effect on Income Statement in the Expense Section and will be classified as a Financing Activity in the Statement of Cash flows.
Explanation:
1. Falcon purchases common stock of Wildcat. This is classified in the investments tab of the assets account. This will be reflected in balance sheet. The transaction is classified in the investing activity.
2. Falcon borrows from Wildcat and signs Notes payable this will have effects in balance sheet liability account. This is financing activity.
3. Falcon receives Dividend revenue from Wildcat. This will be reflected in income statements as revenue. It will operating activity.
4. Falcon provides services to Wildcat , this is reflected in income statement as revenue. This will appear under operating activity.
5. Falcon pays interest on the borrowings to Wildcat. This is income statement items and is an expense. It belongs to financing activity.
