Which of the Items Is Correct Regarding a Use Tax

question 87

Multiple Choice

Which of the items is correct regarding a use tax?

• A)Use taxes are imposed by every state.
• B)Use taxes only apply when the seller is not required to collect the sales tax.
• C)Amazon collects use taxes on behalf of all its resellers.
• D)States choose to implement either a sales tax or a use tax but not both.

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Definitions:

Cash Receipts

Represents the total cash inflows from transactions, including sales and asset dispositions, during a specific period.

Cash Payments

Financial transactions that involve the transfer of cash to settle a debt or purchase goods and services.

Separate Schedule

A detailed list or report that is prepared apart from the main financial statements or documents.

Noncash Expenses

Expenses reported on the income statement that do not involve actual cash flow, such as depreciation and amortization.