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:

Time Deposit

A bank deposit with a fixed term or period of maturity, often offering higher interest rates than regular savings accounts.

Maturity

The time at which a financial obligation is due to be paid or a financial instrument, such as a bond, reaches its final installment.

Negotiable Instruments

Negotiable instruments are financial documents that promise payment to the holder and are freely transferable, such as checks, promissory notes, and bills of exchange.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.