John Camey Goes into a Local Department Store and Purchases

question 81

Multiple Choice

John Camey goes into a local department store and purchases a new suit.He pays $43 in taxes on this purchase.What type of tax is this most likely to be?

• A)General sales tax
• B)Excise tax
• C)Personal property tax
• D)Income tax
• E)Estate tax

---

Definitions:

Cash On Hand

Funds that a company or individual has available in cash form, not invested or deposited in financial institutions.

Zero-balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in amounts only large enough to cover checks presented.

Surplus Cash

Excess cash that a company holds over and above the minimum operational funds required, often used for investment, dividends, or buybacks.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, wherein the payments are sent directly to a post office box, thereby speeding up collection times.