Which of the Following Is Not Characteristic of a Tax

question 68

Multiple Choice

Which of the following is not characteristic of a tax?

• A)A tax is compulsory.
• B)A tax is intended to punish unacceptable behavior.
• C)A tax is levied by a government.
• D)All of the above are characteristics of a tax.

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Definitions:

Goodwill

An intangible asset representing the excess of acquisition cost over the fair value of identifiable net assets acquired in a business combination.

Acquiring Company

A company that purchases most or all of another company's shares to gain control of that company.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its tangible and identifiable intangible assets.

Book Values

The value of an asset as it appears on a company's balance sheet, calculated as the cost of the asset minus any depreciation or amortization.