Correct answer---------(b) tax assessed on the value added through production (at every stage)
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Value added tax is the amount of tax that is required to be paid on the value added between the last stage to the next stage. For example a trader buys some product for 3000 and then process it to be sold for 5000. The Value added tax will be paid on 2000, being the value added (5000-3000).
Value added tax is imposed with a purpose of eliminating double taxation or tax on the tax.
Which of the following defines value add tax (VAT)? O a.tax assessed on income after expenses...
Which of the following statements about the Value-Added Tax (VAT) in NOT true? The VAT is a tax on the changes in value that occur at each stage of production or distribution. A VAT of 5% will yield more revenue than a 5% general sales tax because the VAT is collected several times. The VAT is a regressive tax because it places a greater burden on persons with lower incomes. VAT taxes are currently not in use in the U.S....
Value Added Tax (VAT) must be ignored. QUESTION 2 VALUE ADDED TAX (VAT) The totals of the journals provided below were extracted from the records of Musi Traders, a registered VAT vendor, for June 2016. Musi Traders commenced operations on 01 June 2016. VAT is levied at 14%. None of the products sold by Musi Traders are zero-rated or VAT exempt. REQUIRED Post to the following accounts in the General Ledger: 2.1 VAT Input 2.2 VAT Output 2.3 Debtors Control...
Saved points QUESTION 2 Which of the following defines gross profit? a. The amount remaining from the sales value after deducting interest expense. b. The amount remaining from the sales value after deducting overhead costs c. The amount remaining from the sales value after deducting the cost of goods sold. d. The amount remaining from the sales value after deducting depreciation and Amortization
Thomas Industries reported the following: Net sales Operating expenses $480,000 Cost of goods sold $55,000 Tax rate $340,000 40% The gross profit percentage is: (Round your final answer to the nearest percentage.) O A. 16%. O B. 71%. O c. 28%. OD. 29%
Which of the following is not a subtotal on the multi-step income statement? O A. gross profit OB. income from continuing operations before tax OC. operating income OD. interest expense Hitchcock Enterprises sold a vacant plot of land for $20,000. The company had paid $4,000 for the land ten years ago. On the statement of cash flows, this transaction would be reported as a O A. financing cash inflow of $20,000 B. investing cash inflow of $16,000 O C. investing...
Question 4 Toys4All (Pty) ltd (“Toys4All or the company”) is a registered Value –Added Tax (VAT) vendor and has a two-month tax period. Toys4All operates as a wholesaler of toys that are supplied both local and foreign retailers.The following income and expenditure amounts, inclusive of vat where applicable, have been generated for the tax period 1 Jan 2020 to 29 Feb 2020:RINCOMELocal sales 1,524,900 Export sales 250,000 Interest on loan to a resident subsidiary company 3,450 Bad debts recovered...
Question 4 Toys4All (Pty) ltd (“Toys4All or the company”) is a registered Value –Added Tax (VAT) vendor and has a two-month tax period. Toys4All operates as a wholesaler of toys that are supplied both local and foreign retailers.The following income and expenditure amounts, inclusive of vat where applicable, have been generated for the tax period 1 Jan 2020 to 29 Feb 2020:RINCOMELocal sales 1,524,900 Export sales 250,000 Interest on loan to a resident subsidiary company 3,450 Bad debts recovered...
Question 6 Which of the following are tax deductible expenses for a corporation? O dividend income O common stock dividends O land purchases O interest paid on debt O preferred stock dividends Question 7 1 pts
A company reported the following: Cost of Goods sold General, Selling, and Administrative Expenses Income Tax Expense Inventory Net Income Sales Revenue Sales Discounts Sales Returns & Allowances $200,000 10,000 4,900 16,000 18,000 240,000 3,600 3,500 What is the amount of gross profit?
A company has net sales of $222,000, cost of goods sold $89,000, operating expenses of $55,000, and other expenses of $5,000. The company's net income IS: A. OB. O C. OD, $78,000. $128,000. $34,000. $73,000. A customer purchased items on account from Silverfish, Inc. After a few days, the customer returned the goods. Silverfish, Inc. will issue a: OA. debit memorandum. OB, return receipt. C. credit memorandum O D. refund check. Companies that want a "middle ground" solution to net...