The Share of GDP Going to Federal Taxes

question 55

Multiple Choice

The share of GDP going to federal taxes

• A) has been about 16 to 21 percent for the past 40 years.
• B) has been about 35 percent for the past 40 years.
• C) was about 40 percent until the early 1980s and has dropped greatly since then.
• D) has risen steadily in the past 40 years to about 35 percent.

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Definitions:

Prepayment

Payments made in advance for goods or services, recorded as an asset on the balance sheet until the corresponding goods or services are received.

Adjusting Entries

At the end of a financial period, entries are made in the books to correctly allocate profits and outlays to the period they belong to.

Inter-Relationship of Accounts

The connection and impact that different financial accounts have on each other within the accounting system.

Operations

The day-to-day activities involved in running a business that are necessary for producing and delivering its goods and/or services to the market.