The Average Tax Rate (ATR) Is Defined as

question 246

Multiple Choice

The average tax rate (ATR) is defined as

• A) taxable income divided by tax liability.
• B) change in tax liability divided by change in taxable income.
• C) tax liability divided by taxable income.
• D) change in taxable income divided by change in tax liability.

---

Definitions:

Capital Contribution

Any addition of capital to a company either in cash or in kind by its owners or shareholders to increase its base capital.

Voting Rights

The rights of shareholders to vote on key company decisions, often exercised during annual general meetings or via proxy voting.

Joint Operation

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.