12.) The most common term for a consumption tax is:

		wealth tax.
		progressive tax.
		sales tax.
		income tax.

QUESTION 13

1. Which of the following is a consumption tax?

   		Ad valorem tax
   		Real estate tax
   		Excise tax
   		Personal property tax

QUESTION 14

1. In order to compare the yields on municipal and corporate bondsthe investor must restate the yield of either the taxable corporatebond to an after tax basis or the municipal bond to a pretaxequivalent because:

   		corporate bonds are tax free.
   		municipal bonds are tax free and investors must compare rates onan equal basis.
   		a municipal bond is typically safer than a taxable corporatebond.
   		such restatements are not necessary for most taxpayers.

QUESTION 15

1. Selected accounts are listed below. What is the taxrate?
   (Round to the nearest whole percentage)
   Accounts Payable	$2,000
   Sales	55,000
   Cost of goods sold	26,000
   Interest expense	2,000
   Marketing expense	8,000
   Admin Expense	2,000
   Taxes	4,560

   		27%
   		29%
   		30%
   		34%

QUESTION 16

1. The repayment of debt is:

   		an operating activity.
   		an investing activity no matter how the money from the loan wasallocated.
   		a financing activity.
   		an investing activity assuming the debt was used for thepurchase of a fixed asset.

QUESTION 17

1. Common size income statements divide each account by:

   		revenues.
   		total assets.
   		net income.
   		None of the above

QUESTION 18

1. A use of cash would be generated by which of the following?

   		An increase in accounts receivable
   		A decrease in inventory
   		An increase in accounts payable
   		An increase in accrued expenses