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:

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing how net income is derived from business operations.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to prepare financial statements.

End-of-period Spreadsheet

A tool used for adjusting and closing entries and for preparing financial statements at the end of an accounting period.

Adjusting Entries

Entries made in accounting to update the records for any incomes and expenses that have been incurred but not yet recorded.