General Lighting ​

question 151

Multiple Choice

General Lighting
​
During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.
-Refer to General Lighting. The $150 price of each battery includes a $3 federal excise tax. Which of the following statements is true regarding the proper accounting treatment for the taxes related to this transaction?

• A)They are recorded as additions to revenue.
• B)They are recorded as unearned revenues on the company's balance sheet.
• C)They are recorded as a current liability owed to the taxing authority.
• D)They are recorded as expenses in the same period as the corresponding sales revenue.

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Definitions:

Consumer-Brand Connection

The relationship and emotional bond that develops between consumers and a brand, influencing loyalty and purchasing behavior.

Brand Equity

The value and strength of a brand that decides its worth, based on the consumer's perceptions of the brand's importance and identity.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as superior quality, unique features, or lower costs.

Brand Equity

The value and strength of a brand in the marketplace, often determined by consumer perception and loyalty.