How Do You Calculate Your Average Tax Rate

question 62

Multiple Choice

How do you calculate your average tax rate?

• A)Divide your total income taxes paid by your total income
• B)Divide your total income by your deductions
• C)The difference between your income and taxes paid
• D)The difference between your deductions and total income

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Definitions:

Observed Scores

Quantitative measurements or outcomes obtained from testing or assessment.

Formula

A mathematical expression that calculates or represents a relationship between different variables.

Times Interest Earned Ratio

A financial metric indicating how well a company can meet its interest obligations based on its earnings before interest and taxes.

Depreciation Expense

Dividing the expenditure of a solid asset over its effective life.