A Use Tax Is Imposed By

question 194

Multiple Choice

A use tax is imposed by:

• A) The Federal government and all states.
• B) The Federal government and a majority of the states.
• C) All states and not the Federal government.
• D) Most of the states and not the Federal government.
• E) None of these.

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Definitions:

Maturity Date

The specified date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain as a condition for obtaining a loan, often used to offset the bank's credit risk.

Legal Restrictions

Regulations or limitations prescribed by law that affect the actions of individuals, businesses, or governments.