Which of the Following Is a Direct Tax

question 127

Multiple Choice

Which of the following is a direct tax?

• A)excise tax 
• B)tax on corporate profits 
• C)property tax 
• D)sales tax

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Definitions:

Cash Discount

A reduction in the price of an item for sale, offered by the seller as an incentive for the buyer to pay promptly.

Trade Credit

Short-term financing extended by a seller to a buyer allowing the latter to purchase goods or services and pay for them at a later date.

Trade Credit

The credit extended to a buyer by a supplier, allowing the buyer to purchase goods or services and pay for them at a later date.

Trade Creditors

Trade creditors refer to suppliers from whom a business has purchased goods or services on credit, payable within a short period, typically less than one year.