Which One of the Following Statements Related to Taxes Is

question 63

Multiple Choice

Which one of the following statements related to taxes is correct?

• A)The marginal tax rate must be equal to or lower than the average tax rate for a firm.
• B)The tax for a firm is computed by multiplying the firm's current marginal tax rate times the taxable income.
• C)Additional income is taxed at a firm's average tax rate.
• D)Given the corporate tax structure in 2012, the highest marginal tax rate is equal to the highest average tax rate.
• E)The marginal tax rate for a firm can be either higher than or the same as the average tax rate.

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Definitions:

Deposit Ticket

This is a document that accompanies a bank deposit, listing the amounts of cash and checks being deposited and their respective details.

Negotiable Instrument

A document guaranteeing the payment of a specified amount of money, either on demand or at a set time, with the payer specified on the document.

Endorsement

Signing one's name on the back of a check or other document, authorizing its transfer or acceptance, or the act of publicly supporting a product, service, or candidate.

Cash Receipts

The collection of money, including coins, notes, and electronic payments, received by a business during a given period.