When a Company Is Obligated for Sales Taxes Payable, It

question 106

Multiple Choice

When a company is obligated for sales taxes payable, it is reported as a(n) :

• A) Business expense.
• B) Estimated liability.
• C) Current liability.
• D) Long-term liability.
• E) Contingent liability.

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Definitions:

H+

The proton, often representing an acid in chemistry, capable of forming hydronium ions (H3O+) in solution.

Reactive Intermediate

Highly reactive species formed transiently in the course of a chemical reaction.

Hydroxide

A negatively charged ion (OH-) consisting of oxygen and hydrogen.

Diazomethane

A highly reactive organic compound with the formula CH2N2, used in organic synthesis to introduce methyl groups or to form diazo compounds.