Provincial Sales Tax Payable

question 62

Multiple Choice

Provincial sales tax payable:

• A)Is an estimated liability
• B)Is a contingent liability
• C)Is a current liability for retailers
• D)Is a business expense
• E)All of these

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Break-Even Sales

The amount of revenue from sales that is exactly equal to the sum of fixed and variable costs, resulting in no profit and no loss.

Break-Even Sales

The amount of revenue needed to cover all fixed and variable expenses, resulting in neither profit nor loss.

Foreign Division

A segment or branch of a company that operates in a country different from the company's headquarters, engaging in business activities outside its home market.