Layton Company Does Not Ring Up Sales Taxes Separately on the Cash

question 206

Multiple Choice

Layton Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $18,900. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes?

• A) $900
• B) $945
• C) $45
• D) It cannot be determined.

Understand the fundamental principles of accounting, including the going concern assumption and the business entity assumption.

Identify which accounts contribute to the calculation of net income and understand how different transactions affect it.

Analyze and calculate changes in equity from given financial information.

Comprehend the structure, purpose, and components of the income statement and its relationship with revenues, expenses, and net income.

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