The Practice Generally Known as Double Taxation Is Due to

question 48

Multiple Choice

The practice generally known as double taxation is due to

• A) shareholders' dividends being taxed at both the federal and state levels.
• B) corporate income being taxed at both the federal and state levels.
• C) interest on shareholders' dividends being taxed as income.
• D) corporate incomes being taxed at the corporate level, then again at the shareholder level when corporate profits are paid out as dividends.

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Definitions:

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods and services purchased on credit.

Note Payable

A written promise to pay a certain amount of money at a future date, often including interest.

Borrower

An individual or entity that takes out a loan from another entity or individual under the agreement to repay the amount borrowed, typically with interest.

Creditor

An individual, company, or institution that lends money or extends credit to another party, expecting to be repaid in the future.