Which Entry Could Be Used to Record Sales Tax

question 15

Multiple Choice

Which entry could be used to record sales tax?

• A)Debit Cash, credit Sales Tax Payable
• B)Debit Sates Tax Expense, credit Sales
• C)Debit Sales Tax Payable, credit Sales Tax Expense
• D)Debit Sales Tax Expense, credit Sales Tax Payable

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Definitions:

States of Nature

Hypothetical conditions that represent possible scenarios or outcomes in decision making and probabilistic analysis.

EMV

Refers to Expected Monetary Value, a decision-making tool used in risk management to quantify potential losses or gains in financial terms.

Factory Profits

Refers to the net income generated from manufacturing operations after deducting all operational costs and expenses.

High Demand

A market condition where the desire for a product or service significantly exceeds its supply or availability.