Horizontal Equity in Taxation Refers to the Idea That People

question 545

Multiple Choice

Horizontal equity in taxation refers to the idea that people

• A)in unequal conditions should be treated differently.
• B)in equal conditions should pay equal taxes.
• C)should be taxed according to their ability to pay.
• D)should receive government benefits according to how much they have been taxed.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid or received.

90-Day Note

A short-term debt obligation that is due for repayment within 90 days of the note's issuance.

Direct Write-Off Method

A method of accounting for bad debts that involves charging unpaid customer accounts directly to the income statement when they are determined to be uncollectible.

Accounting Equation

The fundamental equation that ensures the balance of a company's financial records: Assets = Liabilities + Equity.