Which of the Following Statements Is TRUE with Respect to Indirect

question 56

Multiple Choice

Which of the following statements is TRUE with respect to indirect taxation?

• A)The issue of indirect taxation arises in connection with municipalities.
• B)A province can impose an indirect tax because of the doctrine of "residual powers."
• C)An indirect tax is always ultra vires because of the constitutional principle that requires governments to act in an "open and straightforward manner."
• D)An indirect tax is a tax that was created by subordinate legislation.
• E)The federal government can impose an indirect tax, but a provincial government cannot do so.

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Definitions:

Cash Flow

The net amount of cash being transferred into and out of a business, reflecting the organization's liquidity.

Operating Activities

Transactions and events that affect the net income of a business, involving its primary ongoing operations.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used, but not yet paid for.