Which of the Following Statements Is Not Correct

question 29

Multiple Choice

Which of the following statements is not correct?

• A)The book value of a long-term asset is reduced each year as depreciation is recorded.
• B)Buildings and trucks are examples of long-term assets.
• C)Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.
• D)Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.

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Definitions:

Marginal Tax Rate

The percentage of tax applied to your income for every tax bracket in which you qualify.

Average Tax Rate

The fraction of an individual's total income that is paid in taxes, calculated by dividing the total taxes paid by total income.

Taxable Income

the amount of income used to determine how much tax an individual or a company owes to the government, after deductions and exemptions.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.