6. The biggest difference between the income statement and the balance sheet is a. the income statement shows incoming deposits, while the balance sheet shows account balances from the bank b. the income statement is submitted to the government, while the balance sheet is shown to investors c. the income statement is alwavs more accurate than the balance sheet d. the balance sheet represents flows at a point in time, while the income statement reflects flows over a time period. 7. Which of the following is a consumption tax? a. Ad valorem tax b. Real estate tax c. Exercise tax d. Personal property tax 8. Taxable income is a. total income excluding exempt items less deductions and exemptions b. gross income less deduction:s c. the sum of everything a person makes d. gross income less state taxes, mortgage interest, and charitable contributions 9. Deductions are expenditures that can be subtracted in calculating taxable income. Which of the following is a deduction? a. Dependency exemption b. Credit card interest c. Interest on municipal bonds d. Donations to charities 10. If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% . 44% d. 37%