The Movement into a Higher Tax Bracket as a Result

question 26

Multiple Choice

The movement into a higher tax bracket as a result of inflation increasing wages is called ________.

• A) bracket climbing
• B) bracket migration
• C) bracket creep
• D) bracket shifting
• E) none of the above

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Definitions:

Statement Of Comprehensive Income

A financial statement that displays all changes in equity during a period except those resulting from investments by and distributions to the company’s shareholders.

Other Comprehensive Income

Income that includes all changes in equity from non-owner sources, such as foreign exchange adjustments or unrealized gains/losses on certain investments, not included in net income.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.