Why does the recording of a taxable sale increase a company's liabilities?
What will be an ideal response?
A liability increases because the company is collecting sales tax from the customer and owes that tax to the state taxing authority. It is recorded in an account called sales tax payable.
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You are auditing a store that sells merchandise. Some of the store merchandise is held on consignment. Which account balance assertion for inventory should you be most concerned about verifying?
A. Valuation or allocation. B. Completeness. C. Existence or occurrence. D. Rights and obligations.
Marketing channels make it possible for target customers to buy the product at their desired points of purchase
Indicate whether the statement is true or false
?The computation for the yield to call (YTC) is the same as that for the yield to maturity (YTM), except that we substitute the _____ of the bond for the maturity (par) value.
A. ?market price B. ?face value C. ?call price D. ?principal value E. ?issue price
Cooks Delight Corporation makes and sells kitchen appliances. To cover injuries to consumers if the appliances prove defective, Cooks should obtain A) major medical insurance
B) disability insurance. C) liability insurance. D) life insurance.