When a _________________________ Rule Is in Effect, Out-Of-State Sales That

question 18

Short Answer

When a _________________________ rule is in effect, out-of-state sales that are not subject to tax in the destination state are pulled back into the sales factor numerator of the origination state.

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Definitions:

Fiscal Year

The annual accounting period adopted by a business.

Other Receivable

Financial claims against other parties excluding customers, typically representing short-term non-trade receivables such as refunds, deposits, or advances.

Notes Receivable

Financial assets representing the right to receive payments from a debtor pursuant to a written promise or agreement.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.