Given a Tax Rate of

question 22

Multiple Choice

Given a tax rate of $.0824 and an assessed valuation of $74,900, the total property tax due is:

• A) $6,111.67
• B) $6,110.67
• C) $6,071.67
• D) $6,171.76
• E) None of these

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Definitions:

Gross Accounts Receivable

The total amount owed to a company by its customers for goods or services delivered, before deducting any allowance for doubtful accounts.

Contra-Asset Account

An asset account where its balance is a reduction of another asset account, typically used for accumulated depreciation.

Allowance for Doubtful Accounts

A contra-asset account reducing total accounts receivable to reflect the amount that is expected to be uncollectible.

Income Statement Approach

The income statement approach is a method for preparing financial statements, focusing on calculating net income by summarizing revenues and expenses.