Which of the Following Statements Regarding a Convenient Tax Is

question 23

Multiple Choice

Which of the following statements regarding a convenient tax is false?

• A) From the government's viewpoint, a good tax should be convenient to administer.
• B) From the taxpayer's viewpoint, a good tax should be convenient to pay.
• C) A convenient tax should have a method of collection that offers maximum opportunity for noncompliance.
• D) A convenient tax should permit taxpayers to compute their tax with reasonable certainty without incurring undue costs.

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Definitions:

Budget Procedure

The process of creating a plan to allocate resources and predict income and expenditures over a specific period.

Accounting Department

A department within a company responsible for managing financial records, ensuring compliance with standards, and providing financial reporting and analysis.

Static Budget

A budget that shows the expected results of a responsibility center for only one activity level; it is not changed, even if the activity changes.

Budgeting

The process of creating a financial plan to manage revenues, expenses, and resources over a specified period, often projecting future income and expenditures.