When Each Firm Is Liable for Tax on the Basis

question 5

Multiple Choice

When each firm is liable for tax on the basis of its total sales, but can claim the taxes already paid by its suppliers as a credit against liability we are using the

• A)VAT method.
• B)invoice method.
• C)reserve method.
• D)chain method.

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Definitions:

Tangibles

Physical items or products that can be seen, felt, or touched, as opposed to services or digital products.

Synonymous Terms

Words or phrases that have nearly the same meaning or significance.

Small Business Administration

A U.S. government agency that provides support to entrepreneurs and small businesses, including funding and educational resources.

Small Businesses

Small businesses are independently owned and operated companies that are limited in size and revenue, depending on the industry.