After the Accounting Information Has Been Input into the Accounting

question 25

Multiple Choice

After the accounting information has been input into the accounting system, it must be processed.Process accounting data involves:

• A)Source documents and keying
• B)Bar codes and point of sale
• C)Electronic data interchange and e-business
• D)Calculations, classification, and summarization

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Definitions:

Payout Rates

The percentage of earnings paid to shareholders in the form of dividends.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, illustrating how much tax applies to an additional dollar of income.

Income Tax Schedule

A chart that delineates the tax rates applicable to different levels of income, used to calculate taxes owed.

Average Tax Rate

The fraction of total income that an individual or entity pays in taxes, calculated by dividing total taxes by the total taxable income.