The Ability-To-Pay Principle Claims That a Person Should Pay Taxes

question 94

Multiple Choice

The ability-to-pay principle claims that a person should pay taxes according to

• A)the level of public education that the person has received throughout his lifetime.
• B)how many government services that person will receive.
• C)how well that person can shoulder the tax burden.
• D)the level of debt that the person has.

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Definitions:

Single-Entry System

A basic accounting method where each transaction is entered only once, either as an income or expense, making it less complex but more prone to errors than double-entry systems.

Staff Time

The amount of working hours dedicated by employees towards their job tasks.

Audit Expenses

The examination and verification of a company's financial and operational activities, specifically focusing on its expenses.

Accurate and Up-To-Date Records

Detailed, correct, and current documentation of information, crucial in healthcare, legal matters, and business to ensure validity and compliance.