Reference: 1918 $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 117

Multiple Choice

Reference: 1918 $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Income Distribution in the United States }$$$\begin{array} { | l | c | c | } \hline \text { Quintile } & \begin{array} { c } \text { 1968 Income } \\\text { Share }\end{array} & \text { 1997 Income Share } \\\hline \text { Lowest 20\% } & 4.20 \% & 3.60 \% \\\hline \text { Second 20\% } & 11.1 & 8.9 \\\hline \text { Third 20\% } & 17.5 & 15 \\\hline \text { Fourth 20\% } & 24.5 & 23.2 \\\hline \text { Highest 20\% } & 42.8 & 49.4 \\\hline \text { Top 5\% } & 16.6 & 21.7\\\hline\end{array}$$
-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

• A)For 1968, a point on the Lorenz curve would show the lowest 40 percent of the families receiving 15.3 percent of the income.
• B)For 1997, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 49.4 percent of the income.
• C)For 1968, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 24.5 percent of the income.
• D)For 1997, the lowest 40 percent of the families received 8.9 percent of the income.

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Definitions:

Material Events

Significant events that are likely to influence financial decisions or valuations of investors and analysts, requiring prompt disclosure by the entity involved.

Legal Action

Involves seeking remedy or resolution through judicial processes, including lawsuits or litigation, typically to enforce or protect legal rights or settle disputes.

Valuation

The process of determining the present value of an asset or company based on earnings, assets, and other relevant factors.

AASB 110

The Australian Accounting Standards Board standard that provides the guidelines for the treatment of events after the reporting period, including their recognition and disclosure in financial statements.