CIMA Exam CIMAPRA19-F01-1 Topic 6 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 82
Topic #: 6

[All CIMAPRA19-F01-1 Questions]

Which of the following is an example of a progressive tax?

APersonal income tax of 10% on earnings up to $10,000, then at 15% over $10,001

BCorporate income tax of 20% on earnings up to $100,000, then at 10% over $100,000

CCorporate income tax of 20% on all earnings

DPersonal income tax of 10% and corporate income tax of 20%

Show Suggested Answer

Suggested Answer: B

by Mirta at Mar 07, 2024, 04:34 AM

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Elsa

27 days ago

This question is a real head-scratcher. I hope the exam doesn't have too many tricky tax questions like this one.

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Gail

4 days ago

I think it's A) because it has different tax rates based on income levels.

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Theron

7 days ago

A) Personal income tax of 10% on earnings up to $10,000, then at 15% over $10,001

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Carman

29 days ago

Looks like A is the way to go. Gotta love that good old progressive tax system!

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Devora

1 months ago

Option D is just a flat tax, not progressive. I can't believe they'd try to trick us with that one!

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Alaine

1 months ago

Definitely A. The personal income tax rate going up with higher earnings is a classic example of a progressive tax.

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Barrett

4 days ago

A) Personal income tax of 10% on earnings up to $10,000, then at 15% over $10,001

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Rodney

1 months ago

I think B is a progressive tax too, since the corporate tax rate decreases as earnings increase.

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Octavio

5 days ago

Yes, option A follows the principle of a progressive tax where higher income earners pay a higher tax rate.

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Jenelle

7 days ago

I agree, that option A is a progressive tax because the tax rate increases as earnings increase.

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Lashonda

11 days ago

A) Personal income tax of 10% on earnings up to $10,000, then at 15% over $10,001 is an example of a progressive tax.

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Crista

2 months ago

Option A seems like a progressive tax to me. The rate increases as the income level goes up.

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Stevie

10 hours ago

User 4: Yeah, it makes sense that the rate goes up with higher earnings.

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Pok

11 days ago

User 3: Option A is definitely a progressive tax.

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Regenia

18 days ago

User 2: I agree, the tax rate increases as income goes up.

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Cyndy

2 months ago

User 1: I think Option A is the progressive tax.

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Van

2 months ago

I'm not sure, but I think A makes sense because it follows the principle of a progressive tax.

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Jerry

2 months ago

I agree with Hayley, because it has a higher tax rate for higher earnings.

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Hayley

3 months ago

I think the answer is A.

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