Which of the Following Refers to a Tax Designed to Reduce

question 151

Multiple Choice

Which of the following refers to a tax designed to reduce the consumption of a specific good?

• A) control tax
• B) sin tax
• C) flat tax
• D) tax credit

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Definitions:

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.

Income Tax Expense

The total amount of income tax a company is obligated to pay to government authorities, based on its taxable income.

Accrued Warranty Expense

The estimated cost of repair, replacement, or restitution that a company expects to incur under its product warranties, recognized before the actual expenses occur.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income.