The Tax Per Unit on a Good Is the

question 23

Multiple Choice

The tax per unit on a good is the

• A) difference between the list price and the actual price paid by the buyer.
• B) licensing fees and other business taxes paid by sellers, averaged over the total quantity of goods sold.
• C) difference between the total price paid by the buyer and the price received by the seller.
• D) difference between wholesale and retail prices.

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Definitions:

Cash Flow Statement

A cash flow statement is a financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Non-cash Expenses

Expenses recorded on a company's income statement that do not involve an actual cash outlay, such as depreciation or amortization.

Sales Returns and Allowances

Deductions from gross sales that reflect products returned by customers and discounts provided for minor defects.

Contra-asset Account

A type of account in the general ledger that reduces the value of a related account when its balance is subtracted from the balance of the related account.