There Is a Difference Between Who Is Legally Required to Send

question 23

Multiple Choice

There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax. Which of the following would have the most impact on who bears the burden of an excise tax?

• A) whether the tax is imposed by the federal government or a state government
• B) whether the tax is based on the ability-to-pay principle or the benefits-received principle
• C) The motive for the tax. If the tax is designed to raise revenue, more of the burden will fall on firms. If the tax is designed to achieve a social objective (for example, to discourage smoking) more of the burden will fall on consumers.
• D) The elasticity of demand for the item that is taxed.

Recognize the treatment of dividends in financial statements and their impact on consolidation.

Distinguish between pre-acquisition and post-acquisition equity and its importance in the consolidation process.

Grasp the necessity of eliminating double counting in the consolidation of parent and subsidiary financial statements.

Understand the regulatory requirements and the process for preparing consolidated financial statements.

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Definitions:

Neandertal

A member of an extinct species of human, closely related to modern humans, that lived in Europe and parts of Asia until about 40,000 years ago.

Acheulean Tool Tradition

An archaeological industry of stone tool manufacture characterized by distinctive oval and pear-shaped hand-axes associated with early humans.

Hand Axe

A prehistoric stone tool, often bifacially flaked to a point or edge, used by early humans for chopping, cutting, and as a general utility tool.

Neandertals

An extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago, known for their robust build and large brain capacity.