A Value-Added Tax Is a Tax on Consumption and Not

question 65

True/False

A value-added tax is a tax on consumption and not on personal income.

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Definitions:

Voting Rights

The privileges granted to shareholders to vote on matters affecting the company they have invested in.

Cash Dividend

A payment made by a company out of its earnings to shareholders, typically in the form of cash.

Dividends Payable

A liability recorded on a company's balance sheet representing the amount of dividends it owes to shareholders.

Retained Earnings

Profits that a company has decided to keep and reinvest in the business, rather than distribute to shareholders as dividends.