Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

A model rocket is sold for $24.00, and the sales tax on the rocket is $1.92. What is the percent of sales tax applied to the sale?

10%

12%

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Verified step by step guidance

Step 1: Understand the problem. The goal is to calculate the percentage of sales tax applied to the sale of the rocket. The sales tax amount is $1.92, and the selling price of the rocket is $24.00.

Step 2: Recall the formula for calculating the percentage of sales tax: $ \text{Sales Tax Percentage} = \left( \frac{\text{Sales Tax Amount}}{\text{Selling Price}} \right) \times 100 $.

Step 3: Substitute the given values into the formula. The sales tax amount is $1.92, and the selling price is $24.00. The formula becomes $ \text{Sales Tax Percentage} = \left( \frac{1.92}{24.00} \right) \times 100 $.

Step 4: Perform the division $ \frac{1.92}{24.00} $ to find the proportion of the sales tax relative to the selling price.

Step 5: Multiply the result of the division by 100 to convert the proportion into a percentage. This will give the sales tax percentage applied to the sale.