When a Company Collects Sales Tax from a Customer,the Event

question 5

Multiple Choice

When a company collects sales tax from a customer,the event is recorded with a(n) _________ in Cash and a(n) _________ in Sales Tax Payable:

• A)increase;decrease
• B)increase;increase
• C)decrease;increase

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Definitions:

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Indifference Curve

A graphical representation showing combinations of goods or services among which a consumer is indifferent, meaning they have no preference for one combination over another, holding utility constant.

Absolute Value

The non-negative value of a number without regard to its sign.

Slope

In mathematics and economics, the measure of the steepness or incline of a line, indicating the rate of change of one variable with respect to another.