Which, If Any, of the Following Transactions Will Increase a Taxing

question 123

Multiple Choice

Which, if any, of the following transactions will increase a taxing jurisdiction's revenue from the ad valorem tax imposed on real estate?

• A)A resident dies and leaves his farm to his church.
• B)A large property owner issues a conservation easement as to some of her land.
• C)A tax holiday issued 10 years ago has expired.
• D)A bankrupt motel is acquired by the Red Cross and is to be used to provide housing for homeless persons.
• E)None of these.

---

Definitions:

Window Dressing

Techniques employed by firms to make their financial statements look better than they really are.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Long-Term Debt

Borrowings and financial obligations that are due for repayment beyond one year's time, often used for major investments or acquisitions.

Profit Margins

Financial ratios that measure the percentage of profit a company generates from its revenues, indicating the efficiency at which a company converts sales into profits.