Describe at Least One Advantage and One Disadvantage of Combining

question 17

Essay

Describe at least one advantage and one disadvantage of combining categories as was done in the previous question.

---

Definitions:

Derived Tax Revenue

Income obtained by government authorities through taxation that is influenced or generated from specific business activities or transactions.

FICA

The Federal Insurance Contributions Act, a U.S. law requiring a deduction from paychecks to fund Social Security and Medicare.

Property Taxes

Taxes imposed on property owners by local governments, based on the assessed value of their property, including lands and buildings.

Governmental Funds

Categories of funds used by governments in accounting to segregate transactions related to specific government functions, such as education or public safety.