When a Business Sells an Item and Collects a State

question 139

True/False

When a business sells an item and collects a state sales tax on it,a current liability to the state arises.

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Definitions:

Interest Paid

The amount of money paid by a borrower to a lender in return for the use of borrowed funds, calculated as a percentage of the loan amount.

Dividends Paid

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Cost of Sales

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventories

The complete list of items such as property, goods in stock, or the contents of a building.