Validity Refers To

question 28

Multiple Choice

Validity refers to:

• A)Ensuring that transactions are not omitted from accounting records.
• B)Ensuring that recorded transactions should have been recorded.
• C)Ensuring that all recorded transactions have been approved before recording.
• D)Ensuring that all recorded transactions have been recorded at the right dollar amount.

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Definitions:

Simplified Tax Formula

A streamlined method for calculating taxable income, starting with adjusted gross income, subtracting either standard or itemized deductions, and personal exemptions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or expenditure), revealing the percentage of income paid in taxes.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity in a given tax period.

Taxable Income

The amount of income that is used to calculate an individual or a corporation's income tax due, after all deductions and exemptions.