"Welcome Stranger" Assessment Occurs When

question 8

Multiple Choice

"Welcome Stranger" assessment occurs when:

• A) real property is assessed only at infrequent intervals, causing substantial tax increase in those reassessment years.
• B) real property is revalued for tax purposes only when it is sold
• C) real property assessments increase more rapidly than prevailing property values.
• D) real property is reassessed more frequently than personal property.

---

Definitions:

Operating Expenses

Costs associated with the day-to-day functions of a business outside of direct production activities, such as sales, marketing, and general administration.

Income Tax Rate

The percentage at which an individual or corporation is taxed, often varying based on income or profit levels.

Capital Budgeting

Capital budgeting involves the process of analyzing and evaluating investment decisions in long-term assets to maximize an entity's value.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, simplifying the accounting process.