Which of the Following Is an Example of an Excise

question 116

Essay

Which of the following is an example of an excise tax?
A.a tax of $0.41 per gallon of gas
B.a tax of 12.4% of your wages
C.a tax on the value of your property
D.a one-time local government tax of $50

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Definitions:

Debiting

The process of recording an entry on the left side of the accounting ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or income.

Consuming Goods

Goods that are used by consumers and are typically expended when used, opposed to durable goods which are designed to last for a prolonged period.

Generating Revenues

Generating revenues refers to the process through which a business earns money by selling goods or providing services.

Expenses

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.