Match Each Statement with the Correct Term Below

question 98

Multiple Choice

Match each statement with the correct term below.
-Wherewithal-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:

Rival in Consumption

A characteristic of a good whereby its consumption by one individual prevents simultaneous consumption by another individual.

Excludable

A characteristic of a good or service whereby it is possible to prevent non-paying customers from having access to it.

Concerts

Live performances of music before an audience, ranging from solo performances to ensemble or orchestral presentations.

Buyers

Individuals or entities that purchase goods or services for personal use, consumption, or investment.