When Making an Out-Of-State Purchase as Is Often the Case

question 123

Multiple Choice

When making an out-of-state purchase as is often the case when buying online) , consumers are usually obligated to pay a ________________, which is usually the same rate as a sales tax. However, most consumers ignore this requirement.

• A) Use tax
• B) State import fee
• C) Compliance tax
• D) Interstate trade tax

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Definitions:

Buildings

Physical structures owned or used by a business for its operations, considered as a fixed asset on the balance sheet.

Machinery and Equipment

Long-term assets used in the operation of a business, typically for manufacturing, processing, or office operations.

Land

A natural resource that refers to the earth's surface not covered by water, which can be used for agriculture, construction, or as an investment.

Insurance

A financial product that provides protection against losses or damages, typically in the form of a policy for which the insured pays a premium.