Which of the Following Discoveries Through the Use of Analytical

question 149

Multiple Choice

Which of the following discoveries through the use of analytical procedures would most likely indicate a relatively high risk of financial failure?

• A) a decline in gross margin percentages
• B) an increase in the balance in fixed assets
• C) an increase in the ratio of allowance for uncollectible accounts to gross accounts receivable, while at the same time accounts receivable turnover also decreased
• D) a higher than normal ratio of long-term debt to net worth as well as a lower than average ratio of profits to total assets

Grasp the concept of marginal tax rates and how they apply to additional income.

Recognize the regressive nature of certain taxes and why.

Understand the basis of the benefits-received principle of taxation and the ability-to-pay principle.

Understand the changes in government spending and tax structure from 1960 to 2018.

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Definitions:

MR

Marginal Revenue, which is the increase in revenue resulting from the sale of one additional unit of a product.

Output Level

The amount of output produced by a firm or an industry within a certain period.

Demand Curve

An illustrated diagram indicating how consumer demand for a product varies with changes in its price.

Output Quantity

The amount of goods or services produced by a company, industry, or economy within a specific period.