Which of the Following Is an Example of a Tax

question 114

Multiple Choice

Which of the following is an example of a tax that is designed according to the "benefit principle"?

• A)a metered water tax
• B)school tax (based on property value)
• C)a provincial sales tax
• D)value-added tax
• E)federal income tax

Understand the consolidation process for intercorporate investments.

Determine the deferred income tax consequences of intercompany transactions.

Grasp the effects of acquisition transactions on financial statements, including goodwill recognition.

Apply the initial value method in accounting for investments.

---

Definitions:

Risk of Loss

The potential that an investment's value may decrease, or that one may incur losses from a business transaction.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.

UCC

The Uniform Commercial Code, which is a comprehensive set of laws governing all commercial transactions in the United States.

Electronic Means

Utilizing digital technology and devices to facilitate communication, transactions, or information exchange.