Sales Tax Payable Is an Estimated Liability Arising Out of Sales

question 90

True/False

Sales tax payable is an estimated liability arising out of sales revenue that has been reported on the income statement.

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Definitions:

Disaster Bonds

Financial instruments that are issued to provide insurance companies with liquidity in the event of a disaster, transferring the risk to investors.

Natural Disasters

Severe and unexpected natural events that can cause significant damage to life, property, and the environment.

Insurance Companies

Businesses that provide coverage, in the form of compensation resulting from loss, damage, injury, treatment, or hardship in exchange for premium payments.

Required Rate

The minimum annual percentage earned by an investment that will persuade the individual or company to invest.