An Efficient Way to Finance the Provision of City Services

question 138

Multiple Choice

An efficient way to finance the provision of city services such as street cleaning would be to charge all city residents a lump-sum tax.Such a tax would be:

• A)progressive.
• B)regressive.
• C)proportional.
• D)This question can't be answered without knowing the amount of the tax.

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Definitions:

Ledger

A comprehensive collection of all accounts used by an organization, summarizing all transactions occurring within an accounting period.

Account Balances

The amount of money in a financial repository at any given moment, reflecting the net of debits and credits over time.

Documentation

Written or digital materials that provide official information or evidence regarding processes, transactions, or systems.

Journalizing

The process of recording transactions in a journal so that their effects are reflected in the accounting records.