How to Calculate a Tax - Vocabulary Flashcards

Vocabulary flashcards derived from the note stating that tax equals tax base multiplied by tax rate.

Tax

The amount calculated in the simplest form as the tax base multiplied by the tax rate.

Tax base

The value or quantity to which the tax rate is applied.

Tax rate

The factor used to determine the tax from the tax base.

Amount of tax

The result of multiplying the tax base by the tax rate.

Simplest form

The basic tax calculation: tax = base × rate.

Base

The value used in the tax calculation (the tax base).

Rate

The multiplier applied to the base in computing tax (the tax rate).

Multiply

The arithmetic operation used to combine the base and rate.

Equation

A statement of the form tax = base × rate.

Calculation

The process of determining the amount of tax owed.

Tax base value

The numerical amount on which the tax is computed.

Tax rate value

The numerical factor used in computing the tax.

Product

The result when the tax base is multiplied by the tax rate.

Formula

A concise representation of the tax calculation, such as tax = base × rate.

Tax computation

The act of calculating the tax owed.

Base × rate

The expression that yields the tax amount.

Tax calculation

The process that converts base and rate into tax.

Multiplication

The operation used to compute tax from base and rate.

Tax equation

A written form expressing tax as the product of the base and rate.

Tax amount

Another term for the result of the calculation (the tax).