Which Statement Is True

question 219

Multiple Choice

Which statement is true?

• A)Direct taxes cannot be regressive.
• B)Progressive taxes are always direct.
• C)The federal personal income tax is more progressive than the Social Security tax.
• D)None is true.

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Definitions:

Restricted Fund Method

An accounting practice used for reporting resources that have been restricted by donors or grantors.

Externally Restricted Contribution

Funds received by an organization that are designated for specific purposes by the donor, restricting their use by the recipient.

General Fund

The principal fund of a governmental entity, covering most basic operational activities and services.

Deferral Method

An accounting practice where revenue or expenses are recognized at a date later than when they were initially incurred, often applied to revenue received in advance or prepayments of expenses.