Which of the Following Is Incorrect

question 10

Multiple Choice

Which of the following is incorrect?

• A)Excessive property taxes could discourage construction and repair of buildings.
• B)High income taxes can discourage general economic activity.
• C)Raising the tax rate guarantees increased revenues.
• D)To raise necessary revenue,a tax must not discourage too much of the activity that produces the income.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used globally for the preparation of public company financial statements.

Inventory Holding Gains

Gains resulting from an increase in the value of inventory that a company holds over a period.

Consignment

The process of placing goods with a third party who has the authority to sell the goods on behalf of the owner, but the ownership of the goods remains with the consignor until sold.

Inventory Valuation

A method used to assess the cost or market value of inventories a company holds at the end of a period.