Indirect Taxes Quiz

A tax imposed on income and profits of individuals and businesses

A tax levied upon goods and services before they reach the customer, who ultimately pays the indirect tax as a part of the market price of the good or service purchased (correct)

A tax imposed on imports and exports of goods

A tax collected directly by the government from the persons on whom it is imposed

By the consumer directly paying the government at the point of purchase

By the manufacturer from the consumer at the point of sale

By an intermediary from the person who pays the tax included in the price of a purchased good, and then forwarded to the government (correct)

By the government from the persons on whom it is imposed

A direct tax is imposed on imports and exports of goods, while an indirect tax is imposed on income and profits of individuals and businesses

A direct tax is only applicable to luxury goods, while an indirect tax is applicable to all goods and services

A direct tax is paid by businesses, while an indirect tax is paid by individuals

A direct tax is collected directly by the government from the persons on whom it is imposed, while an indirect tax is collected by an intermediary from the person who pays the tax included in the price of a purchased good (correct)

<p>The tax can be shifted or passed on</p> Signup and view all the answers

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