The Most Common Term for a Consumption Tax Is

question 135

Multiple Choice

The most common term for a consumption tax is:

• A)wealth tax.
• B)progressive tax.
• C)sales tax.
• D)income tax.

---

Definitions:

Sales Returns

Goods returned to the seller by the customer post-purchase due to defects or dissatisfaction, affecting the seller's revenue.

Estimated Uncollectibles

Estimated uncollectibles are a provision for debts that are not expected to be collected due to customers being unable or unwilling to pay.

Specific Account Receivable

This pertains to a distinct claim for payment for goods sold or services provided on credit that is owed to a company by its customer.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, indicative of the company’s profitability.