A Liability Account Used to Record Sales Tax Collected and Owed

question 41

Multiple Choice

A liability account used to record sales tax collected and owed:

• A) Sales Tax Expense
• B) Sales Tax Payable
• C) Merchandise Tax
• D) Prepaid Taxes

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Definitions:

Temporary

Pertains to something not permanent or lasting only for a limited period of time.

General Journal

A primary accounting record used to record all types of transactions not assigned to any specialized journal.

Permanent

In the context of accounting, refers to accounts that are not closed at the end of the accounting period, such as asset, liability, and equity accounts.

Temporary

Pertains to accounts or actions in accounting that are not expected to continue for an extended period, often associated with a single accounting period.