Which of the Following Is a Tax System in Which

question 45

Multiple Choice

Which of the following is a tax system in which higher income taxpayers have lower tax rates, even though they pay a larger amount of tax than lower income taxpayers?

• A)a proportional tax system
• B)a progressive tax system
• C)a regressive tax system
• D)none of the above

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Definitions:

Full Fair Value

An approach within certain valuation and accounting frameworks where assets and liabilities are recorded at their full market value.

Proportionate Consolidation Method

An accounting method where an investing entity records its share of the assets, liabilities, income, and expenses of an associate or joint venture.

Assets and Liabilities

Assets are resources owned by a company expected to provide future benefits, and liabilities are obligations a company owes to outside parties.

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, not under compulsion and both having reasonable knowledge of the relevant facts.