Question 1

Sales tax is required in all states.

Accepted Answer

A) True 
 B)False

Question 2

Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15.00 insurance charge. What is the total purchase price of the coat?

Accepted Answer

A) $8,960 
B) $8,400 
C) $8,975 
D) $8,560 
E) None of these 
A) $8,960 
B) $8,400 
C) $8,975 
D) $8,560 
E) None of these

Question 3

The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

Accepted Answer

A) Mills 
B) Budget needed 
C) Market value 
D) Appraised value 
E) None of these 
A) Mills 
B) Budget needed 
C) Market value 
D) Appraised value 
E) None of these

Question 4

Calculate (A)actual sales and (B)sales tax liability. Total sales: $1,110.50 (includes a 7% tax).

Accepted Answer

A. $1,110.50 / 1.07

Question 5

Sales tax is not taken on trade discounts but is taken on cash discounts.

Accepted Answer

A) True 
 B)False

Question 6

Given a tax rate of $0.0824 and an assessed valuation of $74,900, the total property tax due is:

Accepted Answer

A) $6,111.67 
B) $6,110.67 
C) $6,071.67 
D) $6,171.76 
E) None of these 
A) $6,111.67 
B) $6,110.67 
C) $6,071.67 
D) $6,171.76 
E) None of these

Question 7

Judy Ring purchased a watch with a retail price of $8,000. She would still have to pay a sales tax of 6% and an excise tax of 10%. Since the jeweler would be shipping this, there would be an additional $20 shipping charge. The total purchase price of this watch for Judy is:

Accepted Answer

A) $9,300 
B) $8,936 
C) $9,280 
D) $8,496 
E) None of these 
A) $9,300 
B) $8,936 
C) $9,280 
D) $8,496 
E) None of these

Question 8

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 9

Match the following terms with their definitions.
-Property tax

Accepted Answer

A) Tax to raise revenue for cities, schools, etc. 
B) A tax on consumers for certain merchandise or services 
C) Value of property to calculate property taxes 
D) 1/10 of a cent 
E) Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items 
A) Tax to raise revenue for cities, schools, etc. 
B) A tax on consumers for certain merchandise or services 
C) Value of property to calculate property taxes 
D) 1/10 of a cent 
E) Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 10

The market value of a home is $90,000. Find the assessed value if the assessment rate is 71%.

Accepted Answer

.71 × $90,

Question 11

Match the following terms with their definitions.
-Mills

Accepted Answer

A) Tax to raise revenue for cities, schools, etc. 
B) A tax on consumers for certain merchandise or services 
C) Value of property to calculate property taxes 
D) 1/10 of a cent 
E) Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items 
A) Tax to raise revenue for cities, schools, etc. 
B) A tax on consumers for certain merchandise or services 
C) Value of property to calculate property taxes 
D) 1/10 of a cent 
E) Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 12

Given a tax rate of $0.8231 and total property tax due of $12,510, the total assessed valuation rounded to the nearest dollar is:

Accepted Answer

A) $1,519 
B) $150,199 
C) $15,199 
D) $5,199 
E) None of these 
A) $1,519 
B) $150,199 
C) $15,199 
D) $5,199 
E) None of these

Question 13

Calculate (A)actual sales and (B)sales tax liability. Total sales: $1,200.15 (includes a 5% tax).

Accepted Answer

A. $1,200.15 / 1.05

Question 14

Moe Blunt came into Jan's Hardware Store and purchased a hammer for $16.75 plus a 5% tax. The total sales plus tax was:

Accepted Answer

A) $17.55 
B) $17.54 
C) $17.56 
D) $17.62 
E) None of these 
A) $17.55 
B) $17.54 
C) $17.56 
D) $17.62 
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

Match the following terms with their definitions.
-Excise tax

Accepted Answer

A) Tax to raise revenue for cities, schools, etc. 
B) A tax on consumers for certain merchandise or services 
C) Value of property to calculate property taxes 
D) 1/10 of a cent 
E) Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items 
A) Tax to raise revenue for cities, schools, etc. 
B) A tax on consumers for certain merchandise or services 
C) Value of property to calculate property taxes 
D) 1/10 of a cent 
E) Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 17

The county of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. The tax rate of Blue in mills to nearest hundredth is (be sure to round the tax rate to the nearest hundred thousandth before converting to mills):

Accepted Answer

A) 5.71 
B) 57.24 
C) 571.24 
D) 17.50 
E) None of these 
A) 5.71 
B) 57.24 
C) 571.24 
D) 17.50 
E) None of these

Question 18

The home of Tom Burke is assessed at $60,000. The tax rate is 15.18 mills. What is the actual amount of tax on Tom's home?

Accepted Answer

15.18 mill

Question 19

John Rich purchased a ring for a retail price of $13,000. There is a sales tax of 7% along with a 10% excise tax. What is the total cost to John?

Accepted Answer

7% + 10% =

Question 20

Excise tax and sales tax are really the same tax.

Accepted Answer

A) True 
 B)False

Exam 19: Sales, Excise, and Property Taxes

Sales tax is required in all states.

Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15.00 insurance charge. What is the total purchase price of the coat?

The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

Calculate (A)actual sales and (B)sales tax liability. Total sales: $1,110.50 (includes a 7% tax).

Sales tax is not taken on trade discounts but is taken on cash discounts.

Given a tax rate of $0.0824 and an assessed valuation of $74,900, the total property tax due is:

Judy Ring purchased a watch with a retail price of $8,000. She would still have to pay a sales tax of 6% and an excise tax of 10%. Since the jeweler would be shipping this, there would be an additional $20 shipping charge. The total purchase price of this watch for Judy is:

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

Match the following terms with their definitions. -Property tax

The market value of a home is $90,000. Find the assessed value if the assessment rate is 71%.

Match the following terms with their definitions. -Mills

Given a tax rate of $0.8231 and total property tax due of $12,510, the total assessed valuation rounded to the nearest dollar is:

Calculate (A)actual sales and (B)sales tax liability. Total sales: $1,200.15 (includes a 5% tax).

Moe Blunt came into Jan's Hardware Store and purchased a hammer for $16.75 plus a 5% tax. The total sales plus tax was:

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:

Match the following terms with their definitions. -Excise tax

The county of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. The tax rate of Blue in mills to nearest hundredth is (be sure to round the tax rate to the nearest hundred thousandth before converting to mills):

The home of Tom Burke is assessed at $60,000. The tax rate is 15.18 mills. What is the actual amount of tax on Tom's home?

John Rich purchased a ring for a retail price of $13,000. There is a sales tax of 7% along with a 10% excise tax. What is the total cost to John?

Excise tax and sales tax are really the same tax.

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters