A VAT (Value Added Tax)

question 45

Multiple Choice

A VAT (value added tax) :

• A)Is regressive in its effect.
• B)Has not proved popular outside of the United States.
• C)Is not a tax on consumption.
• D)Is used exclusively by third world (less developed) countries.
• E)None of these.

---

Definitions:

Physical Inventory

A detailed listing of merchandise on hand.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory Account

An account that records the value of goods that a retailer, wholesaler, or distributor has available for sale to customers at any given time.

Specific Identification

An inventory costing method where individual costs are assigned to specific items of inventory, often used for unique or high-value items.