Which of the Following Is True of Sales Tax

question 39

Multiple Choice

Which of the following is true of sales tax?

• A)The sales tax is the most important source of local revenue.
• B)State sales tax on most retail goods is referred to as excise tax.
• C)The general sales tax is set at a much higher rate than the specific sales tax.
• D)State sales tax on specific items is referred to as general sales tax.
• E)Every state, even those without a general sales tax, imposes selective sales taxes on some items.

---

Definitions:

Declining-Balance Method

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges later on.

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.

Depreciation Expense

The allocated amount of an asset's cost over its useful life, representing the wear and tear or obsolescence of the asset.