Which of the Following Statements Is Not  Correct Regarding Taxes

question 10

Multiple Choice

Which of the following statements is not  correct regarding taxes?

• A) The largest source of state and local governments tax revenue is sales and excise taxes.
• B) The largest source of federal government tax revenue is individual income taxes.
• C) A sales tax on food is a regressive tax.
• D) A proportional tax is equal to a fixed dollar amount.

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Definitions:

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Bank Balance

Bank balance refers to the total amount of money available in a bank account at a specific point in time, as recorded by the financial institution.

Book Balance

The balance in a financial account according to a company's accounting records, not necessarily reflective of available funds.

Statement of Cash Flows

A report detailing the total cash received by a company from its operational activities and external investments, alongside the total cash expenditures for business activities and investments over a specific time frame.