The Allowance of Deductions in Calculating Taxable Income and the Use

question 80

Multiple Choice

The allowance of deductions in calculating taxable income and the use of a progressive tax rate structure are a direct application of the

• A)Ability to Pay Concept.
• B)Administrative Convenience Concept.
• C)Arm's-Length Transaction Concept.
• D)Capital Recovery Concept.
• E)Pay-as-You-Go Concept.

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Definitions:

Extinction

Also a term from reinforcement theory, extinction refers to the situation in which a behavior is followed by no consequences and eventually disappears.

Underpayment Inequity

A situation where a person perceives that they receive less compensation than they deserve, compared to others in similar positions.

Reduce Inputs

A cost-saving and efficiency strategy which focuses on lowering the resources (such as materials, labor, and energy) used in the production process.

Security Needs

Basic human requirements for safety and security, including physical safety, employment, resources, health, and property.