A Complete Accounting of the Costs of the Tax System

question 6

Multiple Choice

A complete accounting of the costs of the tax system would not include _____.

• A)compliance costs
• B)legislative costs
• C)administrative costs
• D)political costs

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Definitions:

FASB

Financial Accounting Standards Board; an independent organization responsible for establishing accounting and financial reporting standards in the United States.

Future Cash Flows

Future cash flows refer to the projected inflows and outflows of cash that a company expects from its operations over a future period.

Credit Standing

The assessment of a borrower's financial health and ability to repay debt, typically influenced by credit history and financial behavior.

Materiality

An accounting and auditing principle referring to the significance of transactions or information that could influence the decision-making of users of financial statements.