How to start a business Test 3 Review 1

Developed by: Dan

Test 3 Review 1

Question 1: True/False: A seller's permit is the same as an occupational license

	N/A
	False
	True

Question 2: A sales tax is for the privilege of selling _______ at retail with a state

	Intangible Personal Property
	Property purchased in state
	Tangible Personal Property
	Property Purchased outside of state

Question 3: In most cases, who is responsible for paying sales tax?

	The Employer
	The Retailer
	The Consumer

Question 4: Anyone who purchases items for resale or provides a taxable service must obtain a _________

	Seller's Permit
	Occupational License
	Sales Use Permit
	Taxable Permit

Question 5: Your seller's permit number is referred to as ________ in Florida:

	Retroactive Sales Tax Number
	Consolidated Sales tax number
	Floridian Sales tax number

Question 6: States do or do not vary to some degree on the process and information required to obtain a Seller’s permit?

	Do not Vary
	Do Vary
	Neither

Question 7: States vary by the calculation for sales tax resulting in varying amount based on

	The legal structure of the business
	The type of business
	The location of the business

Question 8: The actual percent sales tax may vary for different business items for resale but also due what is considered taxable sales and purchases may vary by _____ of a business

	Type
	Legal Structure
	Location
	Nature

Question 9: True/False: Department of Revenues are very aware of people applying for a Seller’s permit so they can purchase goods for personal use and not pay sales tax

	False
	N/A
	True

Question 10: A use tax normally applies to items purchased ____________ including another country, which are brought and delivered into this state and would have been taxed if purchased in Florida

	In Florida
	Only in countries outside of
	Outside of Florida

Question 11: The use tax rate is the same rate as the sales tax, which is:

	5%
	4%
	3%
	6%
	7%

Question 12: Types of purchases subject to a use tax:

	Mail order catalog purchases only
	Purchases made through the Internet only
	Purchases made in another country only
	Computer equipment or furniture ordered from another state
	Purchases made through the Internet, Mail order catalog purchases, purchases made in another country, Furniture purchased from dealers located in another state, computer equipment ordered out of state, out of state vendors advertising in magazines

Question 13: Items purchased and used in another state, territory of the USA, District of Columbia, for _________ or longer before bringing them into Florida are not subject to a Use tax

	4 years
	6 years
	6 months
	4 months

Question 14: Out of state sales and in state use tax issues are the heart of:

	Global Sales Controversy
	National Sales Controversy
	International Sales Controversy

Question 15: Why the Issue? Our social, commercial, economic, and legal innovations in the last ____ years have made existing laws __________

	25; in existance
	50; obsolete
	25; obsolete
	50; in existance

Question 16: (1992) the US Supreme Court decision stated that companies must maintain a physical presence in a state before it must collect sales tax

	Quill v Idaho
	Quill v South Dakota
	Quill v Wyoming
	Quill v North Dakota

Question 17: State they operate within the law since they do not have a physical presence in certain states. (Amazon v. State of NY 2008)

	Bookstore Publishing Sales Companies
	Retail Sales Companies
	Internet Sales Companies

Question 18: The decision also suggested that ______ was now free to decide whether when or what extent States may burden interstate mail order concerns with the duty to collect Use tax

	State Government
	Federal Government
	Local Government
	Congress

Question 19: Florida representative, Ms Michelle R Vasilanda had introduced the _________________

	Streamlined Sales Tax Legislation
	Streamlined Use Tax Legislation
	Streamlined and Sales and Use Tax Legislation

Question 20: Her proposal meant collecting a sales tax on:

	Out of state purchases
	Internet purchases
	Out of country purchases

Question 21: T/F: On May 2, 2009 her Legislation died in Economic Development Policy Committee

	N/A
	False
	True

Question 22: If an out of state seller fails to collect sales tax, it is ____ responsibility to comply with Florida law. ___ must submit payment directly to the Florida Department of Revenue

	The government's, the government
	Their, They
	Your, you

Question 23: You purchase an item from an Internet company located in Wyoming. The Wyoming company charges you a lawfully imposed Wyoming sales tax of 4%. The item purchased is shipped to you at your Florida residence or business locations.

	You must pay a 6% Florida use tax
	You do not have to pay a Florida use tax
	You must pay a 2% Florida use tax

Question 24: Florida counties may have a Sales Surtax ranging from ___ to ____ charged to merchants up to _____ dollars

	.05; .25, 4,000
	2.5; 3.5, 6,000
	.25; 1.5; 5,000

Question 25: Orange county has an additional Sales Surtax of

	.75%
	1%
	.25%
	.5%

Question 26: Each store and retail store __________ is taxable (some services may be taxable as well)

	Use and rental only
	Storage and use only
	Sale, charge, storage, use, and rental
	Sale and charge only

Question 27: Exemptions include:

	Charitable Organizations
	All of the above
	Churches
	Schools

Question 28: Sales Tax must be accounted for and paid by the _______

	Intermediary Seller
	First Seller
	Final Seller

Question 29: Common information includes when reporting sales tax:

	Gross sales only
	Nontaxable sale of food products, nontaxable labor (service and installation only
	Purchased property for other purposes than resale where taxes where sales tax were not paid by you only
	Gross sales, purchased property for other purposes than resale where taxes where sales tax were not paid by you, nontaxable sale of food products, nontaxable labor (service and installation, Sales in interstate commerce or foreign commerce to out of state consumers
	Sales in interstate commerce or foreign commerce to out of state consumers only

Question 30: Sales tax payments and returns are made ______, and must be postmarked by the _____ of the month

	Quarterly, 20th
	Semi-Annually, 30th
	Annually, 1st
	Monthly, 30th

Question 31: Late penalty is assessed at ___ percent of the amount of the tax owed per month, not to exceed 50

	15
	20
	10
	30

Question 32: T/F: A minimum penalty is assessed on late returns, even if no tax is due

	True
	False
	N/A

Question 33: To apply for your sales and use tax certificate number you will need your ________

	Social Security number only
	FEIN OR Social Security number
	FEIN only

Question 34: Your sales tax certificate number provides information on:

	Sales tax rate tables, defines various businesses and their taxable services and purchases, what is exempt from being taxed, and who (type of business) that must register to collect tax
	Sales tax rate tables only
	Defines various businesses and their taxable services and purchase only
	Who (type of business) that must register to collect tax only
	What is exempt from being taxed only

Question 35: You should ask these questions when setting up a business bank account:

	What are your banking needs?
	Do you already have a personal relationship with a banker? A personal checking/loan account, IRA, CD, etc
	All of the above
	Will you need merchant credit card services?
	Will you need business loans?

Question 36: Free, interest bearing account, total business or analyzed business account

	Checking
	Savings
	Notary

Question 37: Business, Money Market, Certificate of Deposits CDS are part of a _____ account

	Notary
	Checking
	Savings

Question 38: Cash management includes:

	Merchant services only
	Payables, receivables, cash position management, and merchant services
	Receivables only
	Payables only
	Cash position management only

Question 39: Service charges, holding period for deposits, charges for returned checks, overdraft protection, ATMS, Notary are all part of a _____ account

	Internet
	Cash
	Savings
	Checking

Question 40: What banking service reduces check costs?

	Savings
	Online
	Notary

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