Monthly remittance of sales tax due has no impact on the income statement,but reduces cash flow from operating activities.

Name: Monthly remittance of sales tax due has no impact on the income statement,but reduces cash flow from operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Monthly remittance of sales tax due is a cash outflow which reduces cash flow from operating activities in the statement of cash flows, but does not impact the income statement which reports revenue and expenses.

Monthly Remittance of Sales Tax Due Has No Impact on the Income