Which of the Following Is a Characteristic of a Current

question 203

Multiple Choice

Which of the following is a characteristic of a current liability?

• A) It creates a present obligation for future payment of cash or services.
• B) It cannot be settled with services.
• C) It is an avoidable obligation.
• D) It occurs because of a future transaction or event.

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Definitions:

Individual Income Taxes

Taxes levied by a government on the income earned by individuals or households within their jurisdiction.

Sales Tax

A tax imposed on sales of goods and services, typically collected by the seller and passed on to the government.

Government Revenue

The total income received by the government from taxes, fees, fines, and other sources.

Regressive

Characteristic of a tax system where the tax rate decreases as the taxable amount increases, imposing a heavier burden on lower-income individuals.