If Personal Income Up to and Including $25,000 Is Not

question 36

Multiple Choice

If personal income up to and including $25,000 is not taxed, income of $25,001 to $50,000 is taxed at 10%, and income over $50,000 is taxed at 20%, then a family earning an income of $75,000 will pay a MARGINAL tax rate of:

• A) 5%.
• B) 7.5%.
• C) 10%.
• D) 20%.

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Definitions:

Equity

The total value of a company's ownership interest by its shareholders, calculated as assets minus liabilities.

Profitability Ratios

Those ratios—gross profit rate, return on sales, return on total assets, and return on common stockholders’ equity—which measure a company’s ability to earn a profit.

Liquidity Ratios

The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.

Debt Management

The process of overseeing and controlling an individual's or organization's debt load through various strategies and planning.