Match Each Statement with the Correct Term Below

question 39

Multiple Choice

Match each statement with the correct term below.
-Ability-to-Pay Concept

• A)Income is subject to tax when it is received without restrictions as to its use or disposition.
• B)Income is considered received when it is credited to the taxpayer's account or made unconditionally available to the taxpayer.
• C)A concept that is fundamental to the progressive tax rate structure.
• D)To be deductible, an expenditure must be made for a business or economic purpose that is greater than any tax avoidance motive of the taxpayer.
• E)The amount of a deduction may not exceed its cost.
• F)Income should be recognized and a tax paid when the taxpayer has the resources to pay the tax.
• G)A type of deductible expenditure that embodies the profit motive requirement.
• H)Allows the omission of items from the tax base for which the costs of compliance exceeds the revenue generated.
• I)A category of expenses that is specifically disallowed.

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Definitions:

Limited Partner

An investor in a partnership who does not have managerial control and whose liability for the partnership's debts is limited to the amount they invested in the business.

ULPA

Ultra-Low Penetration Air (ULPA) filters, which are more efficient than HEPA filters at trapping extremely small particles.

General Partners

Individuals in a partnership who have unlimited liability for the debts and obligations of the partnership, and who manage the operations of the business.

Limited Partners

Investors in a partnership who are not involved in day-to-day management and are only liable for the investment they have made in the business.