According to the Benefits-Received Principle of Taxation

question 120

Multiple Choice

According to the benefits-received principle of taxation

• A)individuals who receive the benefits from a government program should pay the taxes that support the program.
• B)because high-income individuals receive the most benefits from government programs, they should pay more taxes than lower-income individuals.
• C)people in the same economic situation should bear an equal share of the tax burden.
• D)the benefits of government programs such as national defense are shared equally by all people; therefore, the burden of paying for these programs should be shared equally.

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Definitions:

Independent Scenarios

Situations or case studies that are analyzed separately, each one not affecting or dependent on the outcomes of the others.

Income Summary

An account to which all revenues and expenses are transferred, to summarize the income or loss for a reporting period before transferring the balance to retained earnings or capital accounts.

Unearned Revenue

Unearned revenue represents money received by an entity for a service or product that has yet to be provided or delivered. It is recorded as a liability on the balance sheet.

Capital Account

An account showing the net worth of a business at a specific point in time, reflecting owners' equity and investments.