Which of the following statements is true about sales tax? O a. Sales tax is collected by retailers from customers to be paid to tax authorities later. O b. Sales tax is recorded and paid by customers to tax authorities. Oc. C. Sales tax is not required to be mentioned in the sales invoice prepared by a seller. O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.
Which of the following statements is true about sales tax? O a. Sales tax is collected by retailers from customers to be paid to tax authorities later. O b. Sales tax is recorded and paid by customers to tax authorities. Oc. C. Sales tax is not required to be mentioned in the sales invoice prepared by a seller. O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 8MCQ
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![Which of the following statements is true about sales tax?
O a. Sales tax is collected by retailers from customers to be paid to tax authorities later.
O b. Sales tax is recorded and paid by customers to tax authorities.
O c. Sales tax is not required to be mentioned in the sales invoice prepared by a seller.
O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8047a4af-435b-4156-8ef4-087511691da3%2Fbfcb4eed-5849-491e-825b-73b4ad211cb1%2F37urukl_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements is true about sales tax?
O a. Sales tax is collected by retailers from customers to be paid to tax authorities later.
O b. Sales tax is recorded and paid by customers to tax authorities.
O c. Sales tax is not required to be mentioned in the sales invoice prepared by a seller.
O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.
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