Which of the Following Is/are Based on an Ability-To-Pay Concept

question 114

Multiple Choice

Which of the following is/are based on an ability-to-pay concept?
I.A flat tax .
II.Johson City charges all households a flat fee of $25 per month for water usage.
III.Boone County recently established Route 89 as a toll road. All cars traveling from East Johnson City to Appleton pay $1.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Statements II and III are correct
• D)Statements I, II, and III are correct.
• E)None of the statements are correct.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, usually fixed and based on a percentage of the par value of the shares.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a period.

Net Sales

The total revenue from sales of goods and services, after deducting returns, allowances for damaged or missing goods, and any discounts allowed.