A Tax That Is Imposed as a Specific Amount Per

question 21

Multiple Choice

A tax that is imposed as a specific amount per unit of a good is a(n)

• A)excise or specific tax.
• B)sales or ad valorem tax.
• C)compound duty.
• D)income tax.

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Definitions:

Voluntary Deductions

Deductions from an employee's paycheck that are made with the employee's consent, such as for benefits, union dues, or retirement plans.

Interest-Bearing Note

A debt security that pays interest to the holder until it matures, at which point the principal is reimbursed.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Note Payable

A financial obligation or loan documented by a written promissory note specifying repayment terms.