Which of the Following Is True About the Percent of Total

question 74

Multiple Choice

Which of the following is true about the percent of total income all levels of government in the U.S.take as taxes?

• A)In 1902 the government collected about 7 percent of total income.In recent years,it collected about 30 percent of total income.
• B)In 1902 the government collected about 30 percent of total income.In recent years,it collected about 7 percent of total income.
• C)In 1902 the government collected about 7 percent of total income.In recent years,it collected about 7 percent of total income.
• D)In 1902 the government collected about 30 percent of total income.In recent years,it collected about 30 percent of total income.

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Definitions:

Depreciation

The process of allocating the cost of buildings and equipment (but not land) over their productive lives using a systematic and rational method

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Depreciation Expense

The allocated portion of the cost of a tangible fixed asset written off each year, reflecting its usage and wear and tear.