Part of the Administrative Burden of a Tax Is

question 38

Multiple Choice

Part of the administrative burden of a tax is

• A)the money people pay to the government in taxes.
• B)reducing the size of the market because of the tax.
• C)the hassle of filling out tax forms that is imposed on taxpayers who comply with the tax.
• D)the cost of administering programs that use tax revenue.

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Definitions:

Profit and Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Trial Balance

A financial report that lists all the balances in each ledger account at a point in time, used to ensure debits equal credits.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.