The Sales Tax

question 45

Multiple Choice

The sales tax

• A) is the major source of revenue for local government.
• B) is never applied to food or medical purchases.
• C) is usually at the rate of 1-2 percent.
• D) is completely shifted to the consumer.
• E) imposes a relatively greater burden on the poor.

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Definitions:

Ending Inventory

The worth of merchandise available for purchase at the conclusion of a financial period.

Maturing Obligations

Debts or obligations that are due to be paid within the next accounting period.

Liquidity Ratios

Financial metrics used to measure a company's ability to meet its short-term obligations with its current assets.

Solvency Ratios

Measures of the ability of the company to survive over a long period of time.