Norlan Company Does Not Ring Up Sales Taxes Separately on the Cash

question 217

Multiple Choice

Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes?

• A) $1,400
• B) $1,470
• C) $70
• D) It cannot be determined.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Profitable Projects

Projects that generate a financial gain or benefit exceeding their costs and investments.

Investment Centres

Divisions or units within an organization that are responsible for generating returns on the assets invested in them.

Residual Income

The amount of net income left over for a business after it has paid out dividends to its shareholders, often used as a measure of corporate and project profitability.