Explain in Detail the Benefits and Drawbacks of a Value-Added

question 4

Essay

Explain in detail the benefits and drawbacks of a value-added tax.

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Definitions:

Net Income

The total revenue of a company minus its expenses, taxes, and the cost of goods sold, indicating the company's profit.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Operating Activities

Transactions and events related to the primary operations of a business, such as revenue from sales and expenses from operations.