Sales Taxes Collected by a Company on Behalf of the State

question 76

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:

Retirement Years

The period of life after one ceases working full time based on achieving a certain age or financial status.

Annual Return

The percentage change in an investment's value over a one-year period, including any dividends or interest, reflecting the compound annual growth rate.

Annual Return

The percentage change in the value of an investment over one year, taking into account both price increases and income received from the investment.

Tax Bracket

A range of incomes taxed at a given rate by the government, with higher incomes typically taxed at higher rates.