Which of the Following Statements Is NOT True

question 33

Multiple Choice

Which of the following statements is NOT true?

• A)States making use of an income tax tend to have the most progressive revenue systems overall.
• B)Sales taxes collected by state governments tend to be more stable in times of economic downturns when compared to other taxes.
• C)Inflation can drive people who get "cost of living raises" into higher tax brackets even though their real earning power does not increase.
• D)Income taxes are relatively easy for governments to collect.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's transactions are mathematically correct.

Debit Column

The left-hand column in an accounting journal or ledger where debits are recorded, indicating an increase in assets or expenses or a decrease in liabilities, equity, or income.

Credit Column

The section of a financial statement or ledger where increases in liabilities, equity, and revenue or decreases in assets and expenses are recorded.

Journalized Transactions

Recording financial transactions in a journal as part of the double-entry bookkeeping system.