Which of the Following Taxes Is a Significant Source of Revenue

question 22

Multiple Choice

Which of the following taxes is a significant source of revenue for state governments?

• A)General sales tax
• B)Individual income tax
• C)Corporate income tax
• D)All of the above

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Definitions:

Ending inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Periodic system

A periodic system is an inventory management approach where inventory levels and the cost of goods sold are calculated at the end of each accounting period, rather than continuously.

Beginning inventory

This is the value of all the inventory (raw materials, work-in-process, and finished goods) that a company has at the start of an accounting period.

LIFO

An inventory valuation method that assumes the last items placed into inventory are the first ones sold; stands for Last In, First Out.