Sales Tax Payable Is A

question 85

Multiple Choice

Sales Tax Payable is a:

• A) liability account with a debit balance.
• B) liability account with a credit balance.
• C) contra-asset account with a debit balance.
• D) contra-asset account with a credit balance.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded, leading to market balance.

Perfectly Elastic

A situation where a small price change results in an infinite change in the quantity demanded or supplied.

Supply

The total amount of a good or service available for purchase at any given price level in a market.

Inelastic Demand

A situation where the quantity demanded of a good or service changes very little when its price changes.