Which of the Following Accounts Is a Permanent Account

question 75

Multiple Choice

Which of the following accounts is a permanent account?

• A) Supplies
• B) Supplies Expense
• C) Owner's drawing
• D) Fees Income

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Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income would be taxed, relevant in progressive tax systems where tax rates increase as income increases.

Federal Income Tax

An annual income tax imposed by the US federal government on individuals, corporations, trusts, and various legal entities.

Average Tax Rate

The portion of an individual's overall income that goes towards taxes, determined by dividing the sum of taxes paid by the total income of the taxpayer.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much of an additional dollar of earnings will be taken as tax.