Where would sales tax payable appear?
A) On the balance sheet as a current liability
B) On the balance sheet as a long-term liability
C) On the income statement as an expense
D) There is no account called sales tax payable

Question

Quizplus · Accepted Answer

Sales tax payable is a current liability because it is a debt that a company expects to pay off within one year. It appears on the balance sheet under current liabilities, reflecting the amount of sales tax collected from customers that the company owes to the government.

Where Would Sales Tax Payable Appear