The Idea That a Business Will Continue to Operate Instead

question 265

True/False

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

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Definitions:

Tax Revenues

The income that is collected by governments through taxation.

Progressive Tax

A tax in which the average tax rate rises with income. People with higher incomes will pay a higher percentage of their income in taxes.

Proportional Tax

A tax in which the average tax rate is the same at all income levels. Everyone pays the same percentage of income in taxes.

Regressive Tax

A tax in which the average tax rate falls with income. People with higher incomes will pay a lower percentage of their income in taxes.