Which of the Following Statements Is Not Correct

question 505

Multiple Choice

Which of the following statements is not correct?

• A)A gasoline tax can be an example of a tax that uses the benefits principle.
• B)A progressive tax attempts to achieve vertical equity.
• C)A progressive tax can be an example of the ability-to-pay principle.
• D)A regressive tax attempts to achieve vertical equity.

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Definitions:

Cash Flow Information

provides details about a company's cash inflows and outflows over a period.

Direct Method

A cash flow statement presentation technique that lists specific types of cash inflow and outflow transactions directly.

Indirect Method

A method for calculating cash flows in which net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Cash Equivalent

Short-term, highly liquid investments that are easily convertible to known amounts of cash and very close to their maturity.