The Excise Tax on Gasoline Is Based on the Ability-To-Pay

question 134

True/False

The excise tax on gasoline is based on the ability-to-pay principle of taxation.

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Definitions:

Cash Receipts Journal

The special journal in which all cash receipts are recorded.

Compensating Balance

A minimum account balance that a company must maintain as part of an agreement with a lender, often to secure a loan or line of credit.

Cash Balance

The amount of money on hand and available in a company's bank accounts at any given time.

EFT

Electronic Funds Transfer, a system that moves money between accounts electronically.