How to start a business Test 3 Review 1

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40 Questions - Developed by: Dan - Developed on: - 1.831 taken

Test 3 Review 1

  • 1
    True/False: A seller's permit is the same as an occupational license
  • 2
    A sales tax is for the privilege of selling _______ at retail with a state
    Tangible Personal Property
    Property Purchased outside of state
    Property purchased in state
    Intangible Personal Property
  • 3
    In most cases, who is responsible for paying sales tax?
    The Retailer
    The Consumer
    The Employer
  • 4
    Anyone who purchases items for resale or provides a taxable service must obtain a _________
    Seller's Permit
    Taxable Permit
    Occupational License
    Sales Use Permit
  • 5
    Your seller's permit number is referred to as ________ in Florida:
    Consolidated Sales tax number
    Retroactive Sales Tax Number
    Floridian Sales tax number
  • 6
    States do or do not vary to some degree on the process and information required to obtain a Seller’s permit?
    Do Vary
    Do not Vary
  • 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
  • 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
    Legal Structure
  • 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
  • 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
    Outside of Florida
    In Florida
    Only in countries outside of
  • 11
    The use tax rate is the same rate as the sales tax, which is:
  • 12
    Types of purchases subject to a use tax:
    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
    Mail order catalog purchases only
    Purchases made in another country only
    Purchases made through the Internet only
  • 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
  • 14
    Out of state sales and in state use tax issues are the heart of:
    Global Sales Controversy
    National Sales Controversy
    International Sales Controversy
  • 15
    Why the Issue? Our social, commercial, economic, and legal innovations in the last ____ years have made existing laws __________
    50; in existance
    25; in existance
    50; obsolete
    25; obsolete
  • 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 North Dakota
    Quill v South Dakota
    Quill v Idaho
    Quill v Wyoming
  • 17
    State they operate within the law since they do not have a physical presence in certain states. (Amazon v. State of NY 2008)
    Retail Sales Companies
    Bookstore Publishing Sales Companies
    Internet Sales Companies
  • 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
  • 19
    Florida representative, Ms Michelle R Vasilanda had introduced the _________________
    Streamlined Use Tax Legislation
    Streamlined and Sales and Use Tax Legislation
    Streamlined Sales Tax Legislation
  • 20
    Her proposal meant collecting a sales tax on:
    Out of country purchases
    Out of state purchases
    Internet purchases
  • 21
    T/F: On May 2, 2009 her Legislation died in Economic Development Policy Committee
  • 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
    Your, you
    Their, They
  • 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 2% Florida use tax
    You must pay a 6% Florida use tax
    You do not have to pay a Florida use tax
  • 24
    Florida counties may have a Sales Surtax ranging from ___ to ____ charged to merchants up to _____ dollars
    .25; 1.5; 5,000
    .05; .25, 4,000
    2.5; 3.5, 6,000
  • 25
    Orange county has an additional Sales Surtax of
  • 26
    Each store and retail store __________ is taxable (some services may be taxable as well)
    Sale, charge, storage, use, and rental
    Sale and charge only
    Use and rental only
    Storage and use only
  • 27
    Exemptions include:
    Charitable Organizations
    All of the above
  • 28
    Sales Tax must be accounted for and paid by the _______
    First Seller
    Final Seller
    Intermediary Seller
  • 29
    Common information includes when reporting sales tax:
    Nontaxable sale of food products, nontaxable labor (service and installation 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
    Purchased property for other purposes than resale where taxes where sales tax were not paid by you only
    Gross sales only
    Sales in interstate commerce or foreign commerce to out of state consumers only
  • 30
    Sales tax payments and returns are made ______, and must be postmarked by the _____ of the month
    Semi-Annually, 30th
    Quarterly, 20th
    Annually, 1st
    Monthly, 30th
  • 31
    Late penalty is assessed at ___ percent of the amount of the tax owed per month, not to exceed 50
  • 32
    T/F: A minimum penalty is assessed on late returns, even if no tax is due
  • 33
    To apply for your sales and use tax certificate number you will need your ________
    FEIN OR Social Security number
    FEIN only
    Social Security number only
  • 34
    Your sales tax certificate number provides information on:
    Who (type of business) that must register to collect tax only
    What is exempt from being taxed only
    Defines various businesses and their taxable services and purchase only
    Sales tax rate tables only
    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
  • 35
    You should ask these questions when setting up a business bank account:
    What are your banking needs?
    All of the above
    Do you already have a personal relationship with a banker? A personal checking/loan account, IRA, CD, etc
    Will you need business loans?
    Will you need merchant credit card services?
  • 36
    Free, interest bearing account, total business or analyzed business account
  • 37
    Business, Money Market, Certificate of Deposits CDS are part of a _____ account
  • 38
    Cash management includes:
    Payables, receivables, cash position management, and merchant services
    Receivables only
    Merchant services only
    Payables only
    Cash position management only
  • 39
    Service charges, holding period for deposits, charges for returned checks, overdraft protection, ATMS, Notary are all part of a _____ account
  • 40
    What banking service reduces check costs?

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