Economic incidence of tax; prepayment of interest
True and False
1. The person who pays a tax directly to the government bears the economic incidence of the tax.
2. A cash basis taxpayer must account for any prepayment of interest expense under the accrual method.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/economic-incidence-of-tax-prepayment-of-interest-7fgs
...ce. The store owner pay the tax over to the city or state, but you bear the economic incidence of the tax as the purchaser. The store owner simply passes the money through to the proper authority.
Answer is false.
2. A ...