BT- entry test

Which tax policy results in lower incomes paying a higher percentage?

• Regressive tax

• Property tax

• Progressive tax

• Flat tax

What is assessed valuation?

• The value of property determined by tax officials

• A tax on the profits of businesses and the earnings of individuals

• A tax on real estate, which is land and buildings

• A tax on possessions that are movable, such as furniture, machinery, and equipment

What is personal property tax?

• A tax on the profits of businesses and the earnings of individuals

• A tax on real estate, which is land and buildings

• A tax on possessions that are movable, such as furniture, machinery, and equipment

• A tax levied on the retail price of goods and services at the time they are sold

What is a sales tax?

• A tax levied on the retail price of goods and services at the time they are sold

• A sales tax that applies only to selected goods or services

• A tax on the profits of businesses and the earnings of individuals

• A tax on material goods owned

What is the most common type of tax on individual earnings and business profits?

• FICA Taxes

• Sales tax

• Property tax

• Income tax

What is a regressive tax?

• Tax on the retail price of goods and services at the time they are sold

• Everyone pays the same percentage rate

• A tax based on the ability to pay

• Taxation wherein the actual tax rate decreases as the taxable amount increases

What is a proportional tax?

• A sales tax that applies only to selected goods or services

• One in which the tax rate remains the same regardless of the amount on which the tax is imposed

• A tax on the profits of businesses and the earnings of individuals

• A tax based on the ability to pay

GST is a ---------------------------- based tax on consumption of goods and services.

• Destination

• Delivery

An indirect tax is charged on

• Profits

• Gains

• Spending

• Income

Assertion (A): GST is an Indirect Tax

Reason(R): GST is progressive tax in nature.

• Both (A) and (R) are true and (R) is the correct explanation of (A)

• (A) is Correct but (R) is incorrect

• (A) is incorrect but (R) is correct