On 7/1, the beginning balance in sales tax payable is a $50,000 credit. On 7/15, a $45,000 cash payment is made to the governing authority for the sales taxes collected, which results in which of the following: O Assets decrease and expenses increase. O Assets increase and stockholders' equity decrease. O Assets increase and liabilities decrease. O Assets decrease and liabilities decrease. O Assets decrease and stockholders' equity increase. O Assets decrease and expenses decrease.

On 7/1, the beginning balance in sales tax payable is a $50,000 credit. On 7/15, a $45,000 cash payment is made to the governing authority for the sales taxes collected, which results in which of the following: O Assets decrease and expenses increase. O Assets increase and stockholders' equity decrease. O Assets increase and liabilities decrease. O Assets decrease and liabilities decrease. O Assets decrease and stockholders' equity increase. O Assets decrease and expenses decrease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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