The Amount of Sales Tax Collected by a Retail Store

question 126

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:

Supreme Court

The highest judicial court in the United States, consisting of nine Justices and having ultimate appellate jurisdiction.

Precedent

A principle or rule established in a previous legal case that is either binding on or persuasive for a court when deciding subsequent cases with similar issues or facts.

Lower Court

A court of law that is empowered to hear and decide on cases at the first instance, often before they are eligible for appeal to higher courts.

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The official power to make legal decisions and judgments, often within a specific geographic area or over certain types of legal cases.