Which of the Following Is False

question 116

Multiple Choice

Which of the following is false?

• A)A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base.
• B)The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system.
• C)An example of a proportional tax is the tax on gasoline.
• D)An example of a progressive tax is the federal tax on gifts.
• E)None of the choices are correct.

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Definitions:

Comparative Balance Sheets

Financial statements that present the financial position of a company at different points in time for comparison.

Current Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Investing Activities

Parts of a company's cash flow statement that show the amount of money spent or received from investments in assets, securities, and other financial instruments.

Reconciling Columns

Columns used in a reconciliation process to adjust the differences between two sets of records for accuracy.