Taxes Paid on the Purchase of Specific Items Such as Gasoline

question 191

Essay

Taxes paid on the purchase of specific items such as gasoline, cigarettes, or alcoholic beverages are called:
A.personal income taxes.
B.excise taxes.
C.property taxes.
D.sales taxes.

---

Definitions:

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time for investment analysis.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from its total revenue.

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly across its useful life.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.