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12.) The most common term for a consumption tax is:wealth tax.progressive tax.sales tax.income tax.QUESTION 13Which of the following is a consumption tax?Ad valorem taxReal estate taxExcise taxPersonal property taxQUESTION 14In 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 15Selected accounts are listed below. What is the taxrate?(Round to the nearest whole percentage)Accounts Payable $2,000Sales55,000Cost of goods sold 26,000Interest expense 2,000Marketing expense 8,000Admin Expense2,000Taxes4,56027%29%30%34%QUESTION 16The 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 17Common size income statements divide each account by:revenues.total assets.net income.None of the aboveQUESTION 18A use of cash would be generated by which of the following?An increase in accounts receivableA decrease in inventoryAn increase in accounts payableAn increase in accrued expenses