Which of the Following Is an Example of an Indirect

question 78

Multiple Choice

Which of the following is an example of an indirect tax?

• A)value-added tax 
• B)income tax 
• C)inheritance tax 
• D)head tax

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Definitions:

GAAP

A body of accounting and financial reporting standards and rules widely adopted, defined as Generally Accepted Accounting Principles.

Revenue Recognition

The accounting principle that revenue should be reported at the time goods are sold or services are rendered, regardless of when the payment is received.

Expense Recognition

The accounting principle that matches incurred expenses to the revenue they generate, recognizing expenses in the same period as the related revenues.

Revenue Recognition Principle

The accounting principle that revenue should be recorded when earned, regardless of when payment is received.