IIA-ACCA practice question 19 of 35

Under a value-added taxing system:

Full set: 604 questions
Answer options
A: Businesses must pay a tax only if they make a profit.
B: The consumer ultimately bears the cost of the tax through higher prices. Correct answer
C: Consumer savings are discouraged.
D: The amount of value added is the difference between an organization's sales and its cost of goods sold.
Correct Answer:
B. The consumer ultimately bears the cost of the tax through higher prices.
Scroll to Top