If One Was Concerned Only with Satisfying the "Benefit Principle

question 110

Multiple Choice

If one was concerned only with satisfying the "benefit principle," the ideal tax would be a(n)

• A)income tax.
• B)surcharge tax.
• C)sales tax.
• D)user charge.
• E)proportional income tax.

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Definitions:

Sales Account

An account in the general ledger that records the sales of goods or services.

Uncollectible Accounts

Accounts receivable that a business does not expect to collect due to customers being unable or unwilling to pay.

Estimated

An approximation or informed guess of a value, amount, or size based on available data or trends but not derived from exact calculations.

Carrying Amount

The net value of an asset or liability recorded on the balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.