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:

Debt Repayment

The act of paying back money previously borrowed from lenders, which may include both the principal amount and interest.

Financial Statements

Written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.

Public Sector Entities

Organizations that are part of the government sector, including departments, agencies, and various publicly funded operations.

Efficient

Characterized by achieving maximum productivity with minimum wasted effort or expense; operating in an effective way.