Which of the following is not a correct statement about sales taxes?
A) Sales taxes are an expense of the seller.
B) Many companies record sales taxes in the sales account.
C) If sales taxes are included in the sales account, the first step to find the amount of sales taxes is to divide sales by 1 plus the sales tax rate.
D) Sales Taxes Payable is classified as a current liability.

Question

Quizplus · Accepted Answer

Sales taxes are not an expense of the seller; they are collected from the customer at the point of sale and later remitted to the government, making them a liability until they are paid.

Which of the Following Is Not a Correct Statement About