Which of the Following Would Be Included in the Journal

question 74

Multiple Choice

Which of the following would be included in the journal entry to record the payment of sales tax 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:

Liquidating Dividend

A type of dividend paid by a company from its capital base, essentially returning part of the investors' original investment.

Paid-in Capital

Funds raised by a company through the issuance of shares to investors, representing the capital provided by shareholders through direct investments or share purchases.

Par Value

The face value of a bond or stock as stated on the certificate or document, distinct from its market value.

Noncumulative Preferred Stock

A type of preferred stock that does not entitle the holder to claim dividends that were not paid in the past, focusing only on current and future dividend payments.