Which of the Following Would Be Included in the Journal

question 113

Multiple Choice

Which of the following would be included in the journal entry to record the payment of sales taxes payable?

• A)a debit to Sales Tax Payable
• B)a credit to Sales Tax Expense
• C)a debit to Sales Tax Expense
• D)a credit to Sales Tax Payable

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Definitions:

Unrealized Loss

A loss that results from holding an asset that has decreased in value, but the asset has not yet been sold.

Deferred Tax Asset

This asset arises when a company pays more taxes to the government than it currently owes in its financial statements, to be used for future tax relief.

Pre-Tax Income

Earnings before taxes (EBT), calculated as a company's total revenues minus expenses, excluding income taxes, during a reporting period.

Realized Gain

The profit earned from selling an asset for more than its purchase price, indicating a successful investment.