Which of the Following Statements About a Proportionate Income Tax

question 63

Multiple Choice

Which of the following statements about a proportionate income tax rate structure is false?

• A)A theoretic justification for a proportionate rate is its superior potential for wealth redistribution.
• B)Under a proportionate rate structure,the marginal rate equals the average rate.
• C)Under a proportionate rate structure,the taxpayer with the least income pays the same percentage of income to the government as the taxpayer with the most income.
• D)None of the above is false.

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Definitions:

Unearned Ticket Revenue

Money received from ticket sales before the event has occurred, classified as a liability until the service is performed.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Prepaid Rent

An expense recorded before it is actually paid, representing rent payments made in advance of the period to which they relate.

Adjusting Entries

Final journal recordings at the close of an accounting spell to assign revenues and expenditures to the factual period of occurrence.