Which of the Following Statements Is Correct

question 52

Multiple Choice

Which of the following statements is correct?

• A)A tax levied on buyers will never be partially paid by sellers.
• B)Who actually pays a tax depends on the price elasticities of supply and demand.
• C)Government can decide who actually pays a tax.
• D)A tax levied on sellers always will be passed on completely to buyers.

---

Definitions:

Equipment Exchanges

Transactions where businesses trade equipment with each other, often to update or upgrade their operational assets without significant cash outflows.

Commercial Substance

Transactions that cause a significant change in the future cash flows of a company.

Carrying Amount

The book value of assets and liabilities as recorded in an entity's financial statements, minus any accumulated depreciation or amortization.

Straight-Line Method

An approach to depreciation that involves evenly allocating an asset's cost over the period of its useful life.