An Efficient Tax System Is One That

question 500

Multiple Choice

An efficient tax system is one that
(i) maximizes tax revenues.
(ii) minimizes deadweight losses from taxes.
(iii) minimizes administrative burdens from taxes.
(iv) promotes equity across taxpayers.

• A)(i) only
• B)(ii) and (iii) only
• C)(i), (ii), and (iii) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Subsidiary Ledger

A detailed ledger that contains detailed financial information associated with specific accounts, which is summarized in the general ledger.

General Ledger

A comprehensive set of accounts that records all transactions of a company, categorized into assets, liabilities, equity, revenue, and expenses.

Sales Return

Goods returned by the customer to the seller for a refund or credit due to reasons like defects or dissatisfaction.

General Journal

A comprehensive ledger that records all the day-to-day financial transactions of a business.