The "Incidence of a Tax" Is the Term Used to Indicate

question 21

Multiple Choice

The "incidence of a tax" is the term used to indicate

• A) the responsibility for collecting the tax.
• B) who actually bears the tax burden.
• C) who the tax is initially levied on.
• D) the regressive rate structure of the tax.

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Definitions:

Cash Balance

The amount of cash in a company's accounts at any given time, reflecting its immediate monetary resources.

Aging Analysis

A method to evaluate and categorize accounts receivable based on the length of time an invoice has been outstanding to manage and estimate financial health.

Allowance for Doubtful Accounts

An estimate made by a company to account for receivables that may not be collected due to credit risk.

Bad Debt Expense

An expense reported on the income statement, representing the amount of receivables a company does not expect to collect.