State and Local Governments Generate Most of Their Revenues Through

question 7

Multiple Choice

State and local governments generate most of their revenues through

• A)Income taxes.
• B)Sales and property taxes.
• C)Corporate profit taxes.
• D)Inventory and excise taxes.

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Definitions:

Estimated Returns Inventory

An accounting method used to estimate the value of goods that are expected to be returned by customers.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses, interest, and taxes.

Fiscal Year

A 12-month period used for accounting purposes and planning by organizations, which may not align with the calendar year.

Ledger

A comprehensive collection of a company's financial transactions, divided into individual accounts, and recorded in a way that balances are always maintained across assets, liabilities, and equity.