A Tax Is Intended to Deter or Punish Unacceptable Behavior

question 58

True/False

A tax is intended to deter or punish unacceptable behavior.

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Definitions:

Operations

Refers to the ongoing activities of a business that are involved in the production and distribution of products or services.

Indirect Method

A method of reporting cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used.

Operating Activities

Transactions and events that affect net income, primarily related to the core operations of a business.