Taxation Basics Quiz

Interest tax is not a recognized type of tax.

VAT stands for Value Added Tax.

Property tax is based on the value of real estate or property.

The tax on the increase in value of an investment or asset is called Capital gains tax.

The tax levied on goods and services in the United States is called Sales tax.

Income tax is a progressive tax system where the tax rate increases as income increases.

The tax imposed on the transfer of property by inheritance is called Estate tax.

Luxury expenses are not deductible for income tax purposes.

A tax levied on the income or profit of corporations is called Corporate tax.

A tax imposed on the transfer of money or property by gift is called Gift tax.

The term for the difference between total revenue and total expenses in a business is Profit.

The first modern income tax was implemented in the United Kingdom.

A regressive tax system is characterized by a decreasing tax rate as the taxable amount increases.

Capital gains tax is imposed on the value of an asset at the time of transfer.

A Progressive tax system is characterized by an increasing tax rate as the taxable amount increases.

The tax imposed on the transfer of assets upon death is called Estate tax.