​Which of the Following Is an Example of Horizontal Equity

question 546

Multiple Choice

​Which of the following is an example of horizontal equity?

• A)​A wealthy individual should pay more taxes than a lower-income individual ​
• B)A wealthy individual should have a greater average tax rate than a middle-income individual ​
• C)Two persons with identical incomes should pay the same taxes ​
• D)A local government decides to impose taxes based on the benefits principle ​

Understand how International Accounting Standards (IAS 17) dictate the reporting of leases.

Analyze the net advantage of leasing (NAL) and how it influences financial decision-making.

Understand the concept of residual value and its effect on leasing decisions.

Distinguish between the financial treatment and risks of leveraged versus unleveraged leases.

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Definitions:

All-Or-Nothing Thinking

A cognitive distortion involving seeing situations in only two categories instead of on a continuum, such as completely right or completely wrong with no middle ground.

Overgeneralization

A cognitive distortion where an individual applies a general rule too broadly, based on a single incident.

Jumping To Conclusions

A cognitive distortion where an individual makes a premature, often negative, interpretation without sufficient evidence.

Humanistic Approaches

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.