According to the IRS definition, which of the following is not a characteristic of a tax?
A. The payment to the governmental authority is required by law.
B. The payment relates to the receipt of a specific benefit.
C. The payment is required pursuant to the legislative power to tax.
D. The purpose of requiring the payment is to provide revenue to be used for public or governmental purposes.
Answer: B
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The Dayton Corporation began the current year with a retained earnings balance of $32,000 . During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000 . Compute the year-end retained earnings balance
a. $34,000 b. $37,000 c. $41,000 d. $44,000
Detection risk is controllable by the client
a. True b. False Indicate whether the statement is true or false
During the decline stage of the product life cycle, alternative channels of distribution are
preferred over the main channels due to decreasing sales. Indicate whether the statement is true or false
In developing the cash flows for an expansion project, the analysis is the same as the analysis for replacement projects where ________
A) all cash flows from the old assets are equal B) prior cash flows are irrelevant C) all cash flows from the old asset are zero D) cash inflows equal cash outflows