A Tax Haven Is a Country

question 59

Multiple Choice

A tax haven is a country

• A) where companies benefit from establishing fully operating subsidiaries.
• B) that does not charge local companies for importing products from other countries.
• C) that does not charge taxes on the purchase or sale of any items.
• D) with an exceptionally low, or even no, income tax.

---

Definitions:

Unearned Revenues

Money received by a company for a product or service that has yet to be delivered or performed.

Liabilities

Financial obligations or debts owed by a company to creditors, expected to be paid in the future.

Balance Sheet

A detailed statement that captures a business's assets, liabilities, and shareholder equity as of a specific date.

Time Period Assumption

The long life of a company can be reported in shorter time periods, such as months, quarters, and years.