The Wayfair Decision Reversed the Quill Decision, Which Had Affirmed

question 26

True/False

The Wayfair decision reversed the Quill decision, which had affirmed that out-of-state businesses must have physical presence within a state before the state may require the collection of sales taxes from in-state customers.

Apply the concept of common size financial statements to real financial data.

Analyze and interpret liquidity ratios.

Differentiate between return on assets and return on equity in measuring firm profitability.

Understand the value added by the Du Pont identity in financial analysis.

---

Definitions:

Accounting Equation

The foundational equation in accounting, Assets = Liabilities + Owner's Equity, showing the relationship between a company's assets, liabilities, and equity.

Liabilities

Financial obligations of a business that represent debts or amounts owed to others, due to past transactions or events.

Assets

Economic resources owned by a business that are expected to benefit future operations.