Which Type of Tax Is Not Levied by the Federal

question 47

Multiple Choice

Which type of tax is not levied by the federal government?

• A) Corporate income tax
• B) Individual income tax
• C) Employment taxes
• D) General sales tax

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Definitions:

Bond Interest Payable

A liability account that records the amount of interest due on bonds that have not yet been paid to bondholders.

Current Liability

A financial obligation that is due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Premium on Bonds Payable

The surplus by which bonds exceed their nominal value when sold.

Contra-Liability Account

An account on a company's balance sheet that reduces the amount of a liability, serving as a negative balance to that liability.