While the Major Objective of the Federal Income Tax Law

question 121

True/False

While the major objective of the Federal income tax law is to raise revenue, social considerations and economic objectives also affect the tax law.

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Definitions:

Compound Interest

The calculation of interest on the initial principal and also on the accumulated interest of previous periods.

Average Rate of Return

A method of determining the profitability of an investment by dividing the average annual profit by the initial investment cost.

Total Income

The sum of all revenues and gains that a person or business receives over a period of time, before any expenses are subtracted.

Average Rate of Return

A metric that determines the earnings from an investment by dividing the mean yearly profit by the cost of the initial investment.