Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true ?

• A) A sales tax on food is a regressive tax.
• B) The largest source of federal government tax revenue is individual income taxes.
• C) The largest source of state and local governments tax revenue is sales and excise taxes.
• D) All of the above are true.
• E) None of the above are true.

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Definitions:

Capital Expenditures

Large spending by a company on physical assets like property, plant, and equipment, intended to be used for more than one year.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).

Long-Term Debt

Borrowings and financial obligations payable over a period longer than one year.

Equity

Represents the value of an owner's interest in a property or business, calculated as the difference between assets and liabilities.