The Marginal Rate of a New Tax Increases by 1

question 125

Multiple Choice

The marginal rate of a new tax increases by 1% for every $10,000 increase in income.Such a tax is considered

• A)progressive.
• B)universal.
• C)gradual.
• D)fair.
• E)regressive.

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Definitions:

Ledger

A comprehensive record of all financial transactions that occur in a business, serving as the principal book for accounting and analysis.

Chart of Accounts

A systematic list of all account titles and numbers being used by a company to organize its financial transactions and to prepare financial statements.