The Chart of Accounts

question 120

Multiple Choice

The chart of accounts:

• A) is a numbered list of all of the business's accounts.
• B) allows accounts to be located quickly.
• C) can be expanded as the business grows.
• D) All of the above are correct.

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Definitions:

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public services, government obligations, and goods.

Benefits Principle

A concept that suggests taxes should be levied based on the benefits received by taxpayers, ensuring that those who benefit more from public services pay more taxes.

Ability-To-Pay Principle

The ability-to-pay principle is a tax theory suggesting that taxes should be levied based on the taxpayer’s capacity to pay, implying that wealthier individuals should pay more in taxes.

Gasoline Tax

A tax imposed on the sale of gasoline, often used by governments to raise revenue and discourage excessive fuel consumption.