Use the Information Below to Answer the Following Questions

question 54

Multiple Choice

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-What action might be considered if the cash budget reveals a deficit?

• A) purchasing more capital equipment
• B) increasing the overdraft limit
• C) reducing the period of credit to debtors
• D) B and C

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Definitions:

Excise Tax

A tax imposed on specific goods or services, such as tobacco and alcohol, often intended to discourage their use or generate revenue.

Proportional

In economics, proportional refers to a relationship or distribution that remains the same in proportion or rate, such as a tax that takes the same percentage from all income earners.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

Benefits-Received Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.