The Courts in Some States Have Declared the Financing of Public

question 8

Multiple Choice

The courts in some states have declared the financing of public schools by local property taxes unconstitutional because

• A)housing should never be the basis for taxation of any kind.
• B)taxes on real estate generate too much tax revenue.
• C)disparity in property values means some communities have more in tax revenues to spend on education than do communities containing less valuable property.
• D)the funds for public education should come from federal revenues, not from local property taxes.

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Definitions:

Allowance for Doubtful Accounts

A valuation account used to estimate the portion of a company's accounts receivable that may not be collectible.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus any costs related to the sale or completion of goods.

Specific Write-off

The action of recognizing that a specific asset, often an account receivable, has become uncollectible and removing its value from the books.

Allowance for Doubtful Accounts

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