Sales tax is reported as revenue when it is collected, and reported as an expense when it is paid.
Answer the following statement true (T) or false (F)
False
When sales tax is collected, it is reported as a liability, which is decreased when the tax is paid. It has no effect on the income statement.
You might also like to view...
Outstanding checks, deposits in transit, and bank service charges are added to the beginning balance of the bank statement to determine the adjusted bank balance.
Answer the following statement true (T) or false (F)
What is an internal department that oversees all organizational projects?
A. Project deliverables B. Project scope C. Project management office D. Project milestones
The Gramm-Leach-Bliley (GLB) Act:
A) allows banks to acquire insurance companies B) prohibits banks from acquiring insurance companies C) allows banks to form insurance companies D) both A and C
Describe the three types of items: Inventory items, Non-inventory items, and Services. Provide examples of each.
What will be an ideal response?