Which of the Following Statements About Horizontal Equity Is False

question 40

Multiple Choice

Which of the following statements about horizontal equity is false?

• A)Horizontal equity focuses on a rational and impartial measurement of the tax base.
• B)Horizontal equity focuses on the measurement of taxpayers' ability to pay.
• C)If persons with equal ability to pay a tax owe an equal amount of tax,the tax is horizontally equitable.
• D)None of the above is false.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after accounting for sales and new purchases.

LIFO Cost Method

A method of inventory valuation where the last items added to the inventory are considered the first ones sold.

Gross Profit

Gross profit is the financial metric obtained by subtracting the cost of goods sold from sales revenue, representing the core profitability of a company's products or services.

FIFO

An inventory valuation method that assumes that the first items put into inventory are the first ones sold.