Correct Answer:
D. The average tax rate falls as income rises
Low-income earners pay a larger share of income than high-income earners.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
In a regressive tax system:
Related MCQs
The three Es of performance auditing are:
A.
Economy, efficiency and effectiveness
B.
Equity, ethics and elections
C.
Estimates, expenses and earnings
D.
Education, employment and environment
Correct answer is:
A. Economy, efficiency and effectiveness
Do you agree with this answer?
In double-entry bookkeeping, every transaction:
A.
Affects only one account
B.
Is recorded only as a debit
C.
Is recorded only in the cash book
D.
Affects at least two accounts with total debits equal to total credits
Correct answer is:
D. Affects at least two accounts with total debits equal to total credits
Do you agree with this answer?
Normal loss in a process is:
A.
A loss caused by negligence charged to profit and loss
B.
A gain from efficient production
C.
An expected and unavoidable loss that is absorbed by the good units
D.
A sunk cost
Correct answer is:
C. An expected and unavoidable loss that is absorbed by the good units
Do you agree with this answer?
In capital budgeting, depreciation is relevant only because of its effect on:
A.
Cash outflow at the start
B.
Taxes (the depreciation tax shield)
C.
Working capital
D.
The discount rate
Correct answer is:
B. Taxes (the depreciation tax shield)
Do you agree with this answer?
Appropriation audit is carried out to ensure that:
A.
Revenue is maximized
B.
Expenditure is within the grant and incurred for the purpose approved by the legislature
C.
Employees are paid on time
D.
The accounts are printed neatly
Correct answer is:
B. Expenditure is within the grant and incurred for the purpose approved by the legislature
Do you agree with this answer?
A department has no opening WIP, completes 1,000 units and has 400 units in closing WIP that are 50% complete for conversion. Equivalent units for conversion cost are:
A.
1,200
B.
1,400
C.
1,000
D.
1,600
Correct answer is:
A. 1,200
Do you agree with this answer?
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