How is sales tax recorded? Is it considered an expense of a business? Why or why not?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

See More Books

Question Posted: Jan 16, 2015 09:55 AM

See More Questions

Since we're studying employee motivation this week, I thought we'd discuss how to inspire and retain different types of employees. For example, some employees are motivated by money while others are...
Drawing parallels to the trade debate over Boeing-Airbus subsidies, do you think GM exports to China sold by its Chinese partner, Geely, will be saddled with countervailing duties or other tariffs?...
Explain the purpose, uses and advantages of classified statements of cash flows prepared in accordance with IAS 7.
A reaction of the form aA Products is second order with a half-life of 307 s. What is the rate constant of the reaction if the initial concentration of A is 1.87 1002 mol/L?
The following information was taken from the 2012 annual report of Target Corporation (dollars in millions): a. Compute the inventory purchases made by Target during 2012. Record a single entry that...
Pay-later options are options for which the buyer is not required to pay the premium up front (i.e., at the time that the contract is entered into). At expiration, the holder of a pay-later option...
Dalis Financial Services prepares tax returns for small businesses. Data on the companys total costs and output for the past six months appear in the table that follows. The results of regression...
a. The company purchased equipment for $4,400 cash. The equipment is expected to be used for 10 or more years. b. Joel's business bought $7,400 worth of inventory from a publisher. The company will...
There is a lottery with n coupons and n people take part in it. Each person picks exactly one coupon. Coupons are numbered consecutively from 1 to n, n being the maximum ticket number. The winner of...
What is a current liability? Provide some examples of current liabilities.
What is the difference between gross pay and net pay?
Give illustrations from the opening case in this chapter of how both microeconomic and macroeconomic factors influence the global automobile industry.
Critically evaluate the impact of the Internet on the marketing mix for an industry sector of your choice.
Review the reasons why continuous marketing activity involving certain digital media channels is preferable to more traditional burst or campaign-based activity.
What are the options for integrating different types of digital media channels with traditional media?
Explain the difference between online market efficiency and online market effectiveness.
The marketing mix developed as part of annual planning is no longer a valid concept in the Internet era. Discuss.
What mass of sodium acetate, NaCH 3 CO 2 , must be added to 1.00 L of 0.10 M acetic acid to give a solution with a pH of 4.50?
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
What is the average memory access time of a machine whose hit rate is 96%, with a cache access time of 3 ns and a main memory access time of 70 ns?
This problem uses both the statement of earnings and the balance sheet of Indigo Books and Music Inc. that appear in Appendix A at the end of this book and on MyAccountingLab. 1. Journalize Indigo's...
Michael Ingolby opened his first The Outdoor Enthusiast sporting goods store in Calgary in 1999. The store was very successful, and Michael realized he had tapped into a market that had long been...
Ending inventory of the previous period was $150,000, and net purchases this period were $750,000. If Ending inventory this period is $100,000, how much is cost of goods sold?
How do emerging technologies, such as blockchain and distributed ledger technology, disrupt traditional database paradigms by introducing decentralized consensus mechanisms, immutable data storage,...
Pacific Holdings is a diversified conglomerate that has rapidly expanded over the past five years. In 2004, the company reported earnings of $2BN, with net income of $850MM and a market...
3. A swan population can be subdivided into young swans (Y) and mature swans (M). We can then set up a discrete-time model of these populations as follows: Y+1 [0.57 1.5] Y [Mt+1] = 0.25 0.88 M (a)...

How is sales tax recorded? Is it considered an expense of a business? Why or why not?

Question:

Step by Step Answer:

Sales tax is recorded as a liability when it is charged to ...View the full answer

Horngrens Financial and Managerial Accounting

Students also viewed these Accounting questions