The Amount of Sales Tax Collected by a Retail Store

question 107

Multiple Choice

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

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

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Definitions:

Judicial Review

The power of courts to assess the legality of actions or decisions made by the government or other public bodies.

Legislative Action

Legislative action includes the processes and activities through which laws are proposed, considered, modified, and ultimately passed or rejected by a legislative body.

Executive Action

Refers to measures or decisions taken by the executive branch of government, often by a president, governor, or other executive authority.

Strict Scrutiny

A form of judicial review that courts use to determine the constitutionality of certain laws, requiring the law to serve a compelling state interest by the least restrictive means.