For Each of the Following,determine If Each Is a Tax

question 6

Essay

For each of the following,determine if each is a tax and why or why not.
a.$2.50 toll paid on the Florida Turnpike
b.$300 ticket for reckless driving
c.1% local surcharge on hotel rooms to fund public roadways
d.2% city surcharge on wages earned in the city of Philadelphia

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Definitions:

Period-End Adjusting Entry

Journal entries made at the end of an accounting period to update the balances of certain accounts and ensure compliance with the accrual basis of accounting.

Revenue Recognition Rules

Accounting principles that determine when and how revenue is recognized in the financial statements.

Gross Method

An accounting practice where purchase discounts are ignored unless they are actually taken by the purchaser.

Period-End Adjusting Entry

Journal entries made at the end of an accounting period to update accounts for accruals and deferrals that have not been recorded.