Tax Accounting - Chapter 1 Exam Test
Tax Accounting - Chapter 1 Exam Test INTRODUCTION TO TAX Who cares about taxes? - Businesses, politicians, individuals What is Tax? - A payment required by a government that is NOT related to any specific benefit or service received from the government. What are the three key components of a Tax? - •Payment required •Payment imposed by a government agency •Payment not tied directly to a benefit received by the taxpayer What is the general purpose of a tax? - It is to fund the operations of the government. What is a Sin Tax? - a tax on items considered undesirable or harmful, such as alcohol or tobacco. What is an Earmarked Tax? - Taxes assessed to fund a specific purpose. What is the formula to calculate Tax? - Tax = Tax Base × Tax Rate What is a Tax Base? - Defines what is taxed ($) (Ex: income) What is a Tax Rate? - Level of taxes imposed on the tax base (%).
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- Tax Accounting
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- Tax Accounting
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- Uploaded on
- February 19, 2023
- Number of pages
- 9
- Written in
- 2022/2023
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- Exam (elaborations)
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- Questions & answers
Subjects
- tax accounting
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tax accounting chapter 1 exam test
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