In a Sales Journal Used to Record Taxable Sales, the Total

question 63

Multiple Choice

In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal

• A)the total of the Sales column.
• B)the total of the Sales Tax Payable column.
• C)the sum of the totals of the Sales Tax Payable column and the Sales column.
• D)the difference between the total of the Sales Tax Payable column and the total of the Sales column.

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Definitions:

Pre-tax Cost

The expense associated with an investment or action before the effects of taxes are taken into account.

Pay Interest

The act of compensating a lender for the use of borrowed money, usually determined as a percentage of the principal loan amount.

Market Price

The rate in the market at which an asset or service can be bought or sold today.

Debt-equity Ratio

A financial metric assessing a corporation's leverage, obtained by dividing all liabilities by the equity held by shareholders.