Correct Answer:
C. The average tax rate rises as income rises
Higher income earners pay a higher proportion of income in tax.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
In a progressive tax system:
Related MCQs
Stock audit in a government department is intended to:
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
Do you agree with this answer?
The principal budget factor is:
A.
The factor that limits the activities of an organization
B.
The largest expense
C.
The total of sales
D.
The profit target
Correct answer is:
A. The factor that limits the activities of an organization
Do you agree with this answer?
A positive externality is:
A.
A benefit received by third parties who did not pay for it, such as from vaccination
B.
A cost imposed on third parties
C.
A tax on producers
D.
A government subsidy
Correct answer is:
A. A benefit received by third parties who did not pay for it, such as from vaccination
Do you agree with this answer?
Line-item budgeting is a budget format that:
A.
Lists expenditure by inputs such as salaries and supplies
B.
Links spending to results
C.
Starts from zero each year
D.
Excludes salaries
Correct answer is:
A. Lists expenditure by inputs such as salaries and supplies
Do you agree with this answer?
Compared with an external auditor, an internal auditor is mainly:
A.
An employee or function inside the entity that evaluates risk management, control and governance
B.
Appointed by the tax authority to check returns
C.
Responsible for giving an opinion to shareholders
D.
Prohibited from reporting to the audit committee
Correct answer is:
A. An employee or function inside the entity that evaluates risk management, control and governance
Do you agree with this answer?
In zero-based budgeting, managers must:
A.
Add a fixed percentage to last year's budget
B.
Justify every budgeted item from zero in each budget period
C.
Use only last year's figures
D.
Avoid preparing a budget
Correct answer is:
B. Justify every budgeted item from zero in each budget period
Do you agree with this answer?
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