The Amount of Sales Tax Collected by a Retail Store

question 66

Multiple Choice

The amount of sales tax collected by a retail store when making sales is

• A) a miscellaneous revenue for the store.
• B) recorded as an operating expense.
• C) not recorded because it is a tax paid by the customer.
• D) a current liability.

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Definitions:

Chief Executive Officer

The highest-ranking executive in a company, responsible for major corporate decisions, overall operations, and resource management.

Controller

A corporate officer responsible for overseeing and managing the financial reporting, accounting, and auditing of a company.

Treasurer

An officer of a company or organization responsible for overseeing the management and regulation of its financial affairs.

Bylaws

The rules and regulations established by a corporation or other organization that govern its operations and management.