The Tax Base Is

question 139

Multiple Choice

The tax base is

• A) the minimum amount of tax revenue that government must collect each year.
• B) the maximum amount of tax revenue that government must collect each year.
• C) the sum of all incomes earned in the United States.
• D) the value of all goods, services, incomes, or wealth subject to taxation.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects its receivables or the credit it extends to customers.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects cash from credit sales by measuring the number of times accounts receivable are collected during a period.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Net Credit Sales

The total value of sales made on credit minus returns and allowances, reflecting the actual credit sales revenue generated.