Vertical Equity in Taxation Refers to the Idea That People

question 95

Multiple Choice

Vertical equity in taxation refers to the idea that people

• A)in unequal conditions should be treated differently.
• B)in equal conditions should pay equal taxes.
• C)should pay taxes based on the benefits they receive from the government.
• D)should pay a proportional tax rather than a progressive tax.

---

Definitions:

International Financial Reporting Standards (IFRS)

A set of accounting standards designed to bring consistency to accounting language, practices, and statements across the globe.

Net Operating Working Capital

A financial metric that calculates the difference between a company's operating current assets and its operating current liabilities.

Current Assets

Assets on a balance sheet expected to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Current Liabilities

Current Liabilities are a company's debts or obligations that are due to be paid to creditors within one year, including accounts payable, short-term loans, and other short-term financial obligations.