Which of the Following Best Represents an Indirect Tax

question 262

Multiple Choice

Which of the following best represents an indirect tax?

• A) federal income tax
• B) state income tax
• C) local property tax
• D) sales taxes paid on goods and services

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Definitions:

Cash Equivalents

Temporary investments which can quickly be converted into specific cash sums and have a negligible risk of value fluctuation.

Petty Cash Fund

A petty cash fund is a small amount of cash kept on hand by a business for making immediate payments for minor expenses, managed through a petty cash system.

Cash Shortage

A situation where the actual cash on hand is less than the expected amount, often due to errors, theft, or mismanagement.

Replenishment

The process of refilling inventory or stock to ensure adequate levels for ongoing operations or sales demands.