Match Each Term with the Correct Statement Below

question 16

Multiple Choice

Match each term with the correct statement below.
-Direct reduction in the income tax liability often created by Congress to further a public purpose.

• A)Ad valorem tax
• B)Deduction
• C)Excise tax
• D)Exclusion
• E)Expense
• F)Gain
• G)Loss
• H)Ordinary income
• I)Pay-as-you-go concept
• J)Personal property
• K)Real property
• L)Self-assessment
• M)Standard deduction
• N)Statute of limitations
• O)Tax base
• P)Tax credit

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Definitions:

Departmental Accounting

An accounting method that tracks the income, expenses, and profitability of individual departments within a company.

Direct Costs

Costs that can be directly traced to a specific cost object, such as a product, service, or department.

Indirect Costs

Costs that cannot be directly attributed to the production of goods or services, such as overhead and administrative expenses.

Departmental Net Income

The net income generated by a specific department within an organization, after accounting for direct and allocated expenses.