Which of the Following Is Not Based on the Benefits-Received

question 110

Multiple Choice

Which of the following is not based on the benefits-received principle of taxation?

• A)Charging a fee for use of public golf courses
• B)Differences between residential and out-of-state college tuition
• C)The excise tax on gasoline
• D)Toll booths on a highway
• E)Charging a fee per bag to haul away garbage

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Definitions:

Cause and Effect

A relationship where one event (the cause) leads to the outcome of another event (the effect).

Systematic Allocation

The methodical distribution of costs or revenues across different accounts, periods, or projects to match expenses with related revenues.

Expense Recognition

The accounting principle dictating that expenses are recorded when incurred, not necessarily when paid.

Financial Capital Maintenance

A concept where profit is only recognized if the financial amount of a company's net assets at the end of the period exceeds the financial amount at the beginning, excluding any distributions to, or contributions from, owners during the period.