Edgar Browning and William Johnson, in a Paper Published in the Journal

question 149

Multiple Choice

Edgar Browning and William Johnson, in a paper published in the Journal of Political Economy (1984) , presented evidence that a one-dollar transfer to the bottom 40 percent of income distribution costs the top 60 percent nine dollars.If correct, this finding proves

• A)the tax system is generating significant excess burdens.
• B)these transfers are not worth the cost.
• C)loopholes have to be closed.
• D)the burden of the tax system is too great.

Explain the significance of profit margin and how it is calculated.

Distinguish between cash and accrual accounting principles.

Understand the concept of contra accounts and their use in financial reporting.

Analyze and prepare basic adjusting entries related to prepaid expenses, accrued expenses, and depreciation.

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Definitions:

Biodiversity Hotspot

Geographic regions that are rich in species diversity, including many endemic species, and are under significant threat from human activities.

Ex Situ Conservation

The practice of conserving animals, plants, or their genetic material outside their natural habitat, as in zoos or seed banks.

In Situ Conservation

The process of protecting an endangered species in its natural habitat, as opposed to ex situ conservation, which involves protecting species by removing part of the population from a threatened habitat.

Biodiversity Hotspot

A region that is significantly rich in biodiversity and is under threat from human activities.