Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which tax is typically levied on the value of goods sold in transactions?

1. Income tax

2. Sales tax

3. Capital gains tax

4. Property tax

The correct answer is: Sales tax

The tax that is typically levied on the value of goods sold in transactions is sales tax. Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is calculated as a percentage of the sale price and is collected from consumers at the point of purchase. When a customer buys a product, the sales tax is added to the price of the item, and the seller is responsible for collecting and remitting this tax to the government. In contrast, income tax is based on the earnings of individuals and businesses, capital gains tax is applied to profits from the sale of assets or investments, and property tax is assessed on real estate properties based on their value. These taxes operate under different principles and apply to different types of transactions, making sales tax the correct choice for taxing the value of goods sold.