Which of the Following Is True

question 89

Multiple Choice

Which of the following is True?

• A) A regressive tax rate structure imposes an increasing marginal tax rate as the tax base increases.
• B) Regressive tax structures are the most common tax rate structure.
• C) An example of a regressive tax is an excise tax.
• D) In terms of effective tax rates, a sales tax can be viewed as a regressive tax.
• E) None of the choices are correct.

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Definitions:

Recognized Immediately

The principle of recording revenues or expenses in the accounting period when they occur, regardless of when cash is received or paid.

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate sales.

Average Total Assets

A measure that calculates the mean value of a company's assets over a specific period, often used to assess how efficiently these assets are used.

Net Sales

The total revenue from goods or services sold less returns, allowances, and discounts.