Governments Often Require the Following Type of Transfer Price for Income

question 40

Multiple Choice

Governments often require the following type of transfer price for income taxes:

• A) Variable cost
• B) Dual rate
• C) Market price
• D) Activity based cost

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Definitions:

Gain Or Loss

The financial result of selling an asset or investment for more or less than its purchase price, respectively.

Rate Of Yield

From an investment in stock, the ratio of the dividend to the total cost of the stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par

A value assigned the shares of capital stock and stated on the stock certificate.