The Virtual Learning Arcade is a series of models and simulations on various economics and business topics. Each simulation has a range of supporting materials including interactive worksheets, theoretical explanations and multiple choice questions. This simulation is based on a profit and loss account. This page looks at the impact on the profit and loss account of a change in the level of corporation tax.

The Profit & Loss Account The aim of these questions is to assess how a decrease in corporation tax will impact on the profit & loss account. What should be the impact on the profit after tax of an increase in corporation tax?(select one answer) (a) increase (b) decrease (c) remain the same What is the impact of a decrease in corporation tax to 6% on the profit and loss account? (Type your answer to the previous question in the box below, then click on explain) Help on Your answer structure »» Understanding the simulation »» Help on corporation tax »» Navigation The profit & loss account home page »»