Sales Tax Collected by a Company Is Normally Reported As

question 72

Multiple Choice

Sales tax collected by a company is normally reported as:

• A)a current liability.
• B)income tax expense.
• C)an asset.
• D)an operating expense.

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Definitions:

Rent

The payment made for the use of a property, such as land, a building, or an apartment, typically on a monthly basis.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Labor Costs

The total expenses incurred by employing labor, including wages, salaries, and benefits.

Raw Materials

The basic material from which a product is made, often used in manufacturing and production processes.