An Example of the Benefits-Received Principle of Taxation Is A(n)

question 87

Multiple Choice

An example of the benefits-received principle of taxation is a(n) :

• A) gift tax.
• B) cosmetics tax.
• C) cigarette tax.
• D) sewer tax.

---

Definitions:

Assigned Value

A valuation determined for an asset or liability, often used in accounting to assign costs or values.

Risk Adjusted NPV

Net Present Value method adjusted for the risk associated with the uncertain cash flows, taking into account the variability of returns and the cost of capital.

Initial Cost

The initial expenditure required to acquire an asset, including the purchase price and any additional costs necessary to get the asset ready for its intended use.

Cash Inflows

Funds that are received, whether from business operations, investment returns, or financing activities.