Sales taxes collected from customers by the seller are not an expense,instead they represent current liabilities payable to the government.
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Q28: A contingent liability is an existing,uncertain situation
Q29: Quick assets include only cash,short-term investments,and accounts
Q30: Long-term obligations such as notes,mortgages,and bonds are
Q31: If the likelihood of loss is remote,disclosure
Q32: The balance in the Warranty Liability account
Q34: We record a contingent liability when the
Q35: We record gain contingencies when the gain
Q36: A contingent liability is recorded only if
Q37: When a company collects sales taxes,the debit
Q38: The journal entry to record a contingent
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