Which of the Following Represents the Impact of a Taxable

question 109

Multiple Choice

Which of the following represents the impact of a taxable cash sale of $1,250 on the accounting equation if the sales tax rate is 4%?

• A) An increase to cash for $1,300, an increase to sales tax expense for $50, and an increase to sales revenue for $1,250.
• B) An increase to cash for $1,250, an increase to sales tax payable for $50, and an increase to sales revenue for $1,200.
• C) An increase to cash for $1,300, an increase to sales tax payable for $50, and an increase to sales revenue for $1,250.
• D) None of these answer choices is correct.

Understand the processes and strategies for generating and organizing content for messages.

Recognize the importance of audience analysis in determining the scope and approach of a message.

Understand techniques for simplifying complex information for diverse audiences.

Identify the effectiveness of written communication for detailed, complex messages requiring planning.

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Definitions:

Conglomerate

A large corporation composed of a number of different companies or divisions operating in varied industries.

Vertical Merger

The combination of two or more companies that operate at different levels within the same supply chain or industry.

Consolidation

The joining of two or more organizations to form a new organization.

Economy-of-Scope

Economic efficiencies derived from variety, rather than volume, where producing a wider range of products can lead to lower average costs.