A Tax Rate of

question 12

Multiple Choice

A tax rate of $.0711 in decimal expressed per $1,000 of assessed valuation is equal to:

• A) $71.1
• B) $7.11
• C) $.0711
• D) $.00711
• E) None of these

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Net Loss

The amount by which total expenses exceed total revenues for a business over a specified period, indicating financial performance.

Nominal Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and withdrawal accounts.

Temporary Accounts

Accounts used to track transactions in a single accounting period, which are closed and transferred to permanent accounts at the end of the period.