Which of the Following Payments Would Not Be Considered a Tax

question 86

Multiple Choice

Which of the following payments would not be considered a tax?

• A)An assessment based on the selling price of the vehicle.
• B)A local assessment for new sewers based on the amount of water used.
• C)A local assessment for schools based on the value of the taxpayer's property.
• D)A surcharge based upon the amount of income tax already calculated.

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Definitions:

Funding Agency

An organization that provides financial support for various projects or enterprises.

Unrecognized Prior Service Cost

Costs related to pension plan benefits that have been earned by employees in prior periods but have not yet been recognized in financial statements.

Pension Expense

The cost recognized in an accounting period related to an entity's pension plan, which includes service cost, interest cost, expected return on plan assets, and any amortization.

Straight-Line Method

An accounting method of depreciation in which an asset's cost is evenly spread over its useful life.