Which Statement Indicates That an Income Tax Is Progressive

question 78

Multiple Choice

Which statement indicates that an income tax is progressive?  

• A) High-income people pay $3,000; low-income people pay $1,000. 
• B) Low-income people pay $3,000; high-income people pay $1,000. 
• C) High-income and low-income people all pay $1,000 each. 
• D) High-income people pay 20 percent of their income in taxes; low-income people pay 10 percent.

Understand the sequence of steps in the accounting cycle from transaction analysis to preparation of financial statements.

Learn the purpose and creation of the end-of-period spreadsheet (work sheet) and its components.

Comprehend the effect of net income or loss on the balance sheet and income statement preparation from an end-of-period spreadsheet.

Understand the concept of differentiation strategy and its importance in achieving competitive advantage.

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Definitions:

Effect Uncertainty

involves the unpredictability surrounding the consequences or outcomes of a decision or action.

State Uncertainty

The condition of not knowing the true state of a system or environment, often due to insufficient information.

Economic Uncertainty

The unpredictability in economic conditions, which can include factors such as inflation rates, employment levels, and market volatility, affecting business and investment decisions.

Macro Uncertainty

The uncertainty that exists within the broad economy which can impact decision-making and future outcomes on a large scale.