Match Each of the Following Items with the Appropriate Description

question 13

Multiple Choice

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
-Computer equipment purchased by a charity.
i

• A)Taxable
• B)Not taxable

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Definitions:

Dividends Payable

A liability account on a company’s balance sheet indicating the amount owed to shareholders in the form of dividends to be paid out.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which may lower the share price.

Par Value

The nominal or face value of a stock or bond, as stated in the corporate charter or on the certificate.

Stock Dividend

Stock Dividend involves distributing additional shares of a company's stock to its shareholders as a form of dividend.