Which of the Following Would Be an Example of a Lump-Sum

question 22

Multiple Choice

Which of the following would be an example of a lump-sum tax?

• A) A compensated tax.
• B) A retail sales tax.
• C) A head tax.
• D) An admission fee.

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Definitions:

Betterments

Improvements made to a property or asset that increase its value or productivity.

Plant Asset

Plant asset is a long-term physical asset used in the production process of a company, such as machinery, buildings, and equipment.

Revenue Expenditures

Expenses that are directly matched with revenues for a specific period, typically affecting the income statement immediately.

Units-of-production

A depreciation method that allocates the cost of an asset over its useful life based on the amount of production the asset is capable of.