A Newspaper Ad Submitted and Published This Week, with the Agreement

question 24

Multiple Choice

A newspaper ad submitted and published this week, with the agreement to get paid for it next week would, in the newspaper's records:

• A)increase assets and increase revenues.
• B)increase assets and decrease liabilities.
• C)increase assets and increase expenses.
• D)have no effect on total assets.

---

Definitions:

Ability-to-pay Philosophy

A principle of taxation that argues taxes should be levied according to a taxpayer's capacity to pay, focusing on fairness in the distribution of tax burdens.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount or income of the taxpayer increases.

Residential Property

Property designated for living or dwelling for individuals or families.

Regressive Tax

A tax system where the tax rate decreases as the taxpayer’s income increases, placing a higher relative burden on those with lower incomes.