Question 1

To represent the number of mills as a tax rate per dollar, the tax rate is multiplied by .001.

Accepted Answer

A) True 
 B)False

Question 2

Sales tax is never rounded to the nearest cent.

Accepted Answer

A) True 
 B)False

Question 3

Sales tax is taken on shipping charges.

Accepted Answer

A) True 
 B)False

Question 4

Excise tax and sales tax are really the same tax.

Accepted Answer

A) True 
 B)False

Question 5

Assessed valuation is equal to the assessment rate:

Accepted Answer

A) Divided by the market value 
B) Times the book value 
C) Times the market value 
D) Plus the market value 
E) None of these 
A) Divided by the market value 
B) Times the book value 
C) Times the market value 
D) Plus the market value 
E) None of these

Question 6

Sales tax is required in all states.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following are examples of items excluded from excise tax?

Accepted Answer

A) Cigarettes 
B) Beer 
C) Wine 
D) Distilled spirits 
E) None of these 
A) Cigarettes 
B) Beer 
C) Wine 
D) Distilled spirits 
E) None of these

Question 8

A home with a market value of $240,000 is assessed at 40% of the market value. The assessed value is:

Accepted Answer

A) $144,000 
B) $96,000 
C) $69,000 
D) $9,600 
E) None of these 
A) $144,000 
B) $96,000 
C) $69,000 
D) $9,600 
E) None of these

Question 9

Excise tax is based on a percent of the retail price of a product or service.

Accepted Answer

A) True 
 B)False

Question 10

In the portion formula, the sales tax represents the portion.

Accepted Answer

A) True 
 B)False

Question 11

Personal property items do not include:

Accepted Answer

A) Jewelry 
B) Land 
C) Autos 
D) Furniture 
E) None of these 
A) Jewelry 
B) Land 
C) Autos 
D) Furniture 
E) None of these

Question 12

Sales tax is taken on:

Accepted Answer

A) Trade discounts 
B) Cash discounts 
C) Shipping charges 
D) Selling price minus trade discount 
E) None of these 
A) Trade discounts 
B) Cash discounts 
C) Shipping charges 
D) Selling price minus trade discount 
E) None of these

Question 13

Excise tax is not applied to:

Accepted Answer

A) Distilled spirits 
B) Beer 
C) Wine 
D) Doughnuts 
E) None of these 
A) Distilled spirits 
B) Beer 
C) Wine 
D) Doughnuts 
E) None of these

Question 14

Total sales of $400,000 that included a 6% sales tax yields actual sales of:

Accepted Answer

A) $42,800 
B) $37,537.58 
C) $377,358.49 
D) $48,200 
E) None of these 
A) $42,800 
B) $37,537.58 
C) $377,358.49 
D) $48,200 
E) None of these

Question 15

The building of Jim's Hardware is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is:

Accepted Answer

A) $9,477.55 
B) $947.75 
C) $8,695.45 
D) $8,659.54 
E) None of these 
A) $9,477.55 
B) $947.75 
C) $8,695.45 
D) $8,659.54 
E) None of these

Question 16

Sales tax rates are:

Accepted Answer

A) The same in all states 
B) Different in many states 
C) Exempt from all businesses 
D) Not used by retailers, only wholesalers 
E) None of these 
A) The same in all states 
B) Different in many states 
C) Exempt from all businesses 
D) Not used by retailers, only wholesalers 
E) None of these

Question 17

Tax rate per dollar is calculated by taking the budget needed divided by the total assessed value.

Accepted Answer

A) True 
 B)False

Question 18

A mill is 1/10 of a cent.

Accepted Answer

A) True 
 B)False

Question 19

A tax rate of $.0711 in decimal expressed per $1,000 of assessed valuation is equal to:

Accepted Answer

A) $71.1 
B) $7.11 
C) $.0711 
D) $.00711 
E) None of these 
A) $71.1 
B) $7.11 
C) $.0711 
D) $.00711 
E) None of these

Question 20

Excise tax is a tax paid in addition to sales tax.

Accepted Answer

A) True 
 B)False

Exam 19: Sales Excise and Property Taxes

To represent the number of mills as a tax rate per dollar, the tax rate is multiplied by .001.

Sales tax is never rounded to the nearest cent.

Sales tax is taken on shipping charges.

Excise tax and sales tax are really the same tax.

Assessed valuation is equal to the assessment rate:

Sales tax is required in all states.

Which of the following are examples of items excluded from excise tax?

A home with a market value of $240,000 is assessed at 40% of the market value. The assessed value is:

Excise tax is based on a percent of the retail price of a product or service.

In the portion formula, the sales tax represents the portion.

Personal property items do not include:

Sales tax is taken on:

Excise tax is not applied to:

Total sales of $400,000 that included a 6% sales tax yields actual sales of:

The building of Jim's Hardware is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is:

Sales tax rates are:

Tax rate per dollar is calculated by taking the budget needed divided by the total assessed value.

A mill is 1/10 of a cent.

A tax rate of $.0711 in decimal expressed per $1,000 of assessed valuation is equal to:

Excise tax is a tax paid in addition to sales tax.

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