The Following Questions Refer to the Information Given Below

question 12

Multiple Choice

The Following Questions Refer to the information given below.
Suppose the government implements a negative income tax plan to deal with the poverty problem.The negative income tax rate is set at 50%,and the break-even level of income is set at $5,000.
-If a family earns $3,000 income,their disposable income is

• A)$3,000
• B)$4,000
• C)$5,000
• D)$6,000
• E)$8,000

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Definitions:

Operating Segment

A distinct component of a business engaged in activities generating revenues and incurring expenses, whose results are regularly reviewed by the entity's chief operating decision maker.

Revenue Test

A criterion used to evaluate whether an entity's revenue level meets specific thresholds for financial reporting or regulatory compliance purposes.

Operating Segments

Denotes the distinct revenue-producing components of an enterprise, which engage in business activities from which they may earn revenues and incur expenses.

Reportable

Referring to information or events that must be disclosed or reported according to regulatory, legal, or professional requirements.