Match Each of the Following Items with the Appropriate Description

question 93

Short Answer

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-A new auto purchased in Europe and shipped by the driver to her home state in the U.S.

---

Definitions:

Bank Indebtedness

A financial obligation or debt to a bank, often in the form of loans, overdrafts, or lines of credit.

Current Liability

An obligation that a company is expected to pay within the next year or within the normal operating cycle.

Non-current Liability

Long-term financial obligations that are due beyond one year or beyond the normal operating cycle.

Cash Equivalents

Short-term, highly liquid investments that can be easily converted into a known amount of cash with minimal risk of changes in value.