Sales taxes payable:
A) Is an estimated liability.
B) Is a contingent liability.
C) Is a current liability for retailers.
D) Is a business expense.
E) Is a long-term liability.

Question

Quizplus · Accepted Answer

Sales taxes payable is a current liability for retailers as they collect the tax from customers on behalf of the government and are required to remit it within a specific time period. Estimated and contingent liabilities refer to potential future obligations that may or may not need to be paid, and business expenses are costs incurred in running the business. Long-term liabilities are debts with a maturity period longer than a year.

Sales Taxes Payable