​Which of the Following Is an Example of a Tax

question 128

Multiple Choice

​Which of the following is an example of a tax based on the benefits principle?

• A)​An income tax
• B)​A lump-sum tax assessed on household in town to finance the construction of soccer fields
• C)​A gasoline tax imposed by a city to be used to upgrade facilities local high school
• D)​A toll road

Understand the relationship between withdrawals, investments, and owner's equity.

Recognize the impact of revenue and expenses on the financial position of a business.

Distinguish between transactions that affect Assets, Liabilities, and Owner's Equity.

Apply the accounting equation to analyze transaction effects on the balance sheet items.

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Definitions:

Simple Rate

The percentage increase or interest rate in a financial calculation, often straightforward or uncomplicated.

Net Present Value

A method used in capital budgeting to analyze the profitability of an investment, calculating the difference between present values of cash inflows and outflows.

Proposed Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Net Present Value

The divergence in current value of cash inflows versus outflows over an established time frame.