Sales Taxes Are Subject to Input Tax Credits While Value-Added

question 82

True/False

Sales taxes are subject to input tax credits while value-added (VAT) taxes are not.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Annual Earnings

The total profit a company generates in one fiscal year before taxes and other deductions.

Accounts Receivable Turnover

A measure of how frequently during the year the accounts receivable are being converted to cash, computed as sales divided by average accounts receivable.

Collection Practices

The methods employed by a business or collection agency to obtain payment from debtors for bills or loans that are overdue.