Which of the Following Statements About Sales and Use Taxes

question 79

Multiple Choice

Which of the following statements about sales and use taxes is true?

• A) If an individual pays a sales tax on the purchase of an item, she will not have to pay a use tax on the purchase.
• B) If an individual pays a sales tax on the purchase of an item, she will also have to pay a use tax on the purchase.
• C) Many states that impose a sales tax do not impose a complementary use tax.
• D) None of these choices are true.

---

Definitions:

Cash Receipts

Monies received by a business, recorded during the period they are received, including cash sales and collections from customers.

Projected Sales

Future sales estimates based on historical data, market analysis, and other predictive techniques.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services sold on credit.

Budgeted Sales

Forecasted revenue a company expects to generate from selling its products or services in a specific period.