Which of the Following Statements Is True When Setting Up

question 75

Multiple Choice

Which of the following statements is true when setting up your accounting system?

• A) Accounting needs are the same regardless of industry.
• B) Even the smallest businesses need formal record keeping.
• C) The actual task of setting up an accounting system is quite easy if you understand accounting a bit.
• D) It is illegal to outsource your accounting system.

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Definitions:

Income Tax

A tax levied by governments on individuals or entities' income. The rate can vary based on the level of income earned.

Regressive

Describing a tax system in which the tax rate decreases as the taxable amount increases, often placing a higher burden on lower-income individuals.

Proportional

Relating to or denoting a relationship where quantities or sizes are in direct relation to each other.

Tax Tables

A set of charts provided by the IRS that help taxpayers determine the amount of federal income tax they owe based on their income level and filing status.