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:

Lump Sum Payment

A large single payment made at a particular time, as opposed to multiple smaller payments.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal at the end of each month, resulting in interest earned on interest in subsequent months.

Calendar Quarter

A period of three consecutive months within a calendar year used for financial and business reporting.