1.

What is tax and its types in terms of financial management?

Answer»

Tax is defined as a compulsory contribution in the state's revenue, levied by the government on the working class of the state. Tax is levied on commodities, business PROFITS, services, transactions etc.


Federal Income Tax: A tax levied by a national government on annual income.

State and/or Local Income Tax: A tax levied by a state or local government on annual income.

Payroll Tax: A tax an employer withholds and] pays on BEHALF of their employees based on the wage or SALARY of the employee.

Unemployment Tax: A federal tax that is GIVEN to state unemployment agencies to fund unemployed workers

Sales Tax: A tax imposed by the government at the point of sale on retail goods and services.


Foreign Tax: Income taxes paid to a foreign government on income EARNED in that country.

Value-Added Tax: A national sales tax collected at each stage of production or consumption of a good.




Discussion

No Comment Found

Related InterviewSolutions