The amount of sales tax (GST and PST, or HST) collected by a retail store when making sales is
A) a miscellaneous revenue for the store.
B) a current liability.
C) not recorded because it is a tax paid by the customer.
D) will increase the profit of the company.

Question

Quizplus · Accepted Answer

Sales tax collected by a retail store is considered a current liability because the store is holding the tax on behalf of the government and must remit it to the appropriate tax authorities.

The Amount of Sales Tax (GST and PST, or HST)