Which of the Following Is an Argument That the Incidence

question 77

Multiple Choice

Which of the following is an argument that the incidence of corporate taxation falls entirely on consumers?

• A) Corporations pass their tax burdens on to consumers by charging higher prices equal to the amount of the tax.
• B) Corporations pass their tax burdens on to consumers because consumers ultimately work for the corporations.
• C) Corporations always evade taxes so that consumers ultimately bear the tax burdens as taxpayers.
• D) Most taxes on consumers are collected by corporations through sales taxes.

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Definitions:

Credits

Accounting entries that increase liabilities or equity on the balance sheet, or decrease an asset or expense account on the income statement.

Dividends Accounts

Dividends Accounts represent the financial accounts used by a company to record the dividends paid out to shareholders, reflecting the distribution of earnings.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of money, goods, or services.

Debit

A bookkeeping entry that triggers an increment in assets or a decrement in liabilities on a corporation's financial statement.