Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

The tax based on the profits (earnings) of a business is known as:

Income tax

Sales tax

Property tax

Excise tax

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Verified step by step guidance

Understand the concept of income tax: Income tax is a tax imposed on the earnings or profits of a business or individual. It is calculated based on the taxable income, which is the profit after allowable deductions.

Review the definition of sales tax: Sales tax is a tax imposed on the sale of goods and services, typically paid by the consumer at the point of purchase. It is not related to business profits.

Examine the meaning of property tax: Property tax is a tax levied on real estate or other property owned by an individual or business. It is based on the value of the property, not the profits of the business.

Understand excise tax: Excise tax is a tax imposed on specific goods, such as alcohol, tobacco, or fuel. It is typically included in the price of the product and is not related to business profits.

Conclude that the tax based on the profits (earnings) of a business is income tax, as it directly correlates to the taxable income generated by the business.