Sales Taxes Collected from Customers Should Be Recorded in a Liability

question 156

True/False

Sales taxes collected from customers should be recorded in a liability account until the cash is passed along to the taxing authority.

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Definitions:

Work

Engaging in a task, job, or activity for the purpose of earning money, producing goods, or providing services.

Need the Money

A phrase indicating financial necessity, often used to explain the reason for seeking employment or engaging in certain activities for compensation.

Retire

The act of leaving one's job and ceasing to work, typically due to age or health reasons.

Age 66

A specific age that can signify eligibility for senior citizen benefits in some contexts, including retirement and social security in various countries.