The amount of sales tax 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) recorded as an operating expense.

Question

Quizplus · Accepted Answer

Sales tax collected by a retail store is considered a liability because it is collected on behalf of the government and must be paid over to the government at a later date. It is not considered revenue or an expense for the retail store.

The Amount of Sales Tax Collected by a Retail Store