menu
Sign up

Monthly Remittance of Sales Tax

Question 43
Multiple Choice

Monthly remittance of sales tax: A)Reduces liabilities. B)Is a claims exchange transaction. C)Reduces stockholders' equity. D)All of these answer choices are correct.

Related questions
Q 44
Under what condition should a pending lawsuit be recognized as a liability on a company's balance sheet? A)The amount can be reasonably estimated. B)The outcome is probable. C)The outcome is reasonably possible. D)The outcome is probable and can be reasonably estimated.
Q 45
Burger Barn has been named as a plaintiff in a $5 million lawsuit filed by a customer over the addictive nature of the company's french fries.Burger Barn's attorneys have advised them that the likelihood of a future obligation from the suit is remote.As a result of the lawsuit,Burger Barn should: A)Disclose the lawsuit in the notes to the financial statements. B)Recognize a $5 million liability on its balance sheet for the contingency. C)Ignore the lawsuit in its financial statements. D)Settle with the customer immediately for $5 million to avoid harmful publicity.
Q 46
Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation?
logo
© 2020 QuizPlus. All Right Reserved