A Consumption Tax Is a Tax on

question 110

Multiple Choice

A consumption tax is a tax on

• A)goods but not on services.
• B)the amount of income that people spend.
• C)the amount of income that people earn.
• D)the amount of income that people save.

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Definitions:

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Liabilities

Financial obligations a company is required to pay within one year, such as accounts payable and short-term loans.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods and services purchased on credit.