Sales Taxes Collected by a Company on Behalf of the State

question 33

Multiple Choice

Sales taxes collected by a company on behalf of the state and local government are recorded by:

• A)A debit to an expense account.
• B)A credit to a revenue account.
• C)A debit to a revenue account.
• D)A credit to a liability account.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price.

Uncontrollable Factors

External elements or conditions that cannot be directly managed or influenced by an organization, often affecting strategic planning and performance.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Supply

The total amount of a specific good or service that is available to consumers at a given price point and time.