A Trial Balance May Balance Even When Each of the Following

question 69

Multiple Choice

A trial balance may balance even when each of the following occurs except when

• A) a transaction is not journalized.
• B) a journal entry is posted twice.
• C) incorrect accounts are used in journalizing.
• D) a transposition error is made.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the government in a specific tax year.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, typically structured to tax higher income earners at a higher rate.

Taxes

Compulsory financial charges or other types of levies imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.