Which of the Following Is Not Characteristic of an Excise

question 60

Multiple Choice

Which of the following is not characteristic of an excise tax?

• A)An excise tax is levied on the retail sale of specific goods.
• B)Excise tax rates typically are higher than general sales tax rates.
• C)Purchasers of luxury items are responsible for paying any excise tax directly to the government.
• D)All of the above are characteristics of an excise tax.

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Definitions:

Inventory

Goods and materials that a business holds for the ultimate goal of resale or production.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as the standard guidelines for financial accounting.

Purchasing Department

The division within an organization responsible for acquiring goods, services, and equipment necessary for its operations.

Weighted Average Cost Flow Assumption

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.