Excise Taxes to Be Paid on the Purchase of Factory

question 58

Multiple Choice

Excise taxes to be paid on the purchase of factory equipment would be included in which of the following accounts?

• A) Equipment
• B) Deferred Taxes
• C) Excise Tax Expense
• D) Accumulated Depreciation−Equipment

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Definitions:

Warehouser's Lien

A legal right granted to warehouse operators to hold onto a customer's goods until payment has been made for warehouse services.

Stored Goods

Items that are kept in a warehouse or other storage location for future use, sale, or distribution.

Stolen Article

An item that has been taken without permission, leading to the loss of ownership or possession by the rightful owner.