Question : 89.Which of the following could account for a firm that : 1284504

89.Which of the following could account for a firm that has a negative net income, yet has a positive amount of cash provided by operations?   

A. The net loss was greater than the amount of depreciation expense.

B. Inventory increased significantly more than accounts payable.

C. Accounts receivable decreased by significantly more than accounts payable.

D. Cash balances declined to the desired amount.

90.What is the marginal tax rate for a corporation with $60,000 taxable income and an average tax rate of 16.67% if the next-lowest marginal tax rate of 15% covers taxable incomes up to $50,000?   

A. 15.00%

B. 16.67%

C. 18.34%

D. 25.00%

91.Assuming at the $50,000 income level that the corporate tax rate increases from 15 to 25%, which of the following statements is correct for a firm with $75,000 income?   

A. Its marginal tax rate is 15%.

B. Its average tax rate is 25%.

C. Its marginal tax rate is 18.33%.

D. Its average tax rate is 18.33%.

92.For all U.S. corporations except those in the lowest and highest tax brackets, their:   

A. marginal tax rate exceeds their average tax rate.

B. average tax rate exceeds their marginal tax rate.

C. marginal tax rate equals their average tax rate.

D. marginal tax rate equals 15%.

93.Which of the following expenses cannot be used to reduce taxable corporate income?   

A. Cash dividends

B. Depreciation expense

C. Interest expense

D. Administrative expenses

94.For a corporation in the 25% marginal tax bracket that incurs $70.00 in labor and materials expense, plus $15.00 in depreciation expense while generating an incremental revenue of $100.00, tax liability will increase by:   

A. $3.75.

B. $7.50.

C. $13.75.

D. $25.00.

95.According to the current U.S. tax code, the marginal tax rate for personal taxpayers in the highest levels of income is:   

A. 25.0%.

B. 28.0%.

C. 35.0%.

D. 39.6%.

96.Which of the following statements appears correct for a corporation with a negative net income in both the present and the last fiscal year?   

A. This year’s loss can be carried back, but last year’s loss cannot be used.

B. Neither of the losses can be used to reduce taxes.

C. Both losses can be carried forward but not backward.

D. Both losses can be carried forward and backward, within certain time limits.

97.Which of the following statements is correct for an individual with a net income of $50,000.00, a tax liability of $10,704.50, and a 28% marginal tax rate?   

A. The average tax rate is 17.63%.

B. The average tax rate is 21.41%.

C. The average tax rate is 28.00%.

D. The average tax rate is unknown but greater than the marginal tax rate.

98.An individual’s income for the year includes both dividend and interest payments. Which of the following statements will be correct concerning that individual’s tax liability?   

A. Dividends are taxed; tax on interest payments is paid at the corporate level.

B. Interest is taxed; tax on dividend payments is paid at the corporate level.

C. Both dividend and interest payments are taxed at the personal level.

D. All taxes on dividend and interest payments are paid at the corporate level.