The Figure Below Show a Simplified Version of the Current

question 65

Multiple Choice

The figure below show a simplified version of the current (2015) Canadian federal income-tax system.The marginal income-tax rates for the four ranges of income are 15%,22%,26%,and 29%,respectively. FIGURE 18-2
-Refer to Figure 18-2.What needs to be true about the four marginal income-tax rates in order for this tax system to be considered regressive?

• A)they need to be smaller than they are now
• B)they need to be larger than they are now
• C)they need to be constant
• D)they need to decrease as income increases
• E)they need to increase as income increases

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Definitions:

Periodic Inventory

A method of inventory valuation in which the inventory is physically counted at specific intervals, and the cost of goods sold is calculated at the end of the accounting period.

Physical Count

A procedure conducted to verify the actual quantity of items or materials present in inventory, typically performed at the end of an accounting period.

Operating Cycles

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.

Cost of Goods Sold

The immediate expenses related to the manufacture of goods a company sells, which includes materials and labor.